What is Accelerated Debt Consolidation?

Are you burdened with debt? Do you find it more difficult every month to meet the minimum payment for your debt? Your debt piles up every month, creditor calls make you feel very stressed; and you pray every day hoping that some miracle will happen and free you from debt. If you are in a bad debt situation, speeding up debt consolidation can be the best solution to your debt dilemma.

In debt consolidation, you combine several high-interest loans (debt) into a loan with a single monthly payment with a lower interest rate. Debt consolidation allows you to pay more principles every month, often reducing monthly payments, and allows your debt balance to cleared faster.

Your debt can be categorized into two types, unsecured debt, and guaranteed debt. Unsecured debt is money that you borrow from your creditors without requiring any guarantees — liability without comprehensive warranties, including credit cards and personal loans. Secured debt, on the other hand, is a loan or finance package that only approved with the assurance of your collateral in exchange for a certain amount of money and the creditor has the right to insurance. Types of collateral debt are common, including mortgages, car financing, and private property loans. If you miss paying your lender in this case, you will lose your car or house or property.

Accelerated debt consolidation stops with ordinary debt consolidation but only counts in your unsecured debt. Although there are some exceptions, most of the accelerated debt consolidation programs will not include your guaranteed debt; they will take your unsecured debt.

When you sign up for an accelerated debt consolidation program, counselors from debt consolidation companies will first understand your current financial situation, and they will group all your debts into guaranteed and unsecured debt. The counselor will only work on your unsecured debt and propose a repayment plan after communicating and getting terms and conditions from your creditors.

If you have a relatively severe and unmanageable credit score, accelerated debt consolidation is the best choice because debt consolidation takes on unsecured debt which is generally smaller than secured debt (home loans or car loans which are usually higher than credit card balances). This allows you to place a debt consolidation plan in a short time.

Most unsecured debt is high-interest debt (credit card interest rates can range from 10% -18% and personal loans may have interest rates as high as 12%), so it’s right for you to put in place plans to deal with these high-interest debts as soon as possible may be to avoid further worsening the situation. And accelerated debt consolidation can be your best choice for this purpose.

Summary Accelerated debt consolidation is slightly different from ordinary debt consolidation; It only considers your unsecured debt. Accelerated debt consolidation can be your best choice if you are in a critical financial situation and desperately need a plan to place and control your debt.