Business debt consolidation can be structured with senior secured debt, asset based and revolving credit financing.
With debt consolidation, debt service can be structured to support cash flow requirements.
Are you having trouble paying your bills? Are creditors sending you mean, nasty letters? Are they calling you at all hours? Are your accounts being turned over to debt collectors?
Even if you answered yes to only one of the above questions, know this: You are not alone.
With the downturn of the economy in recent years, many Americans are deep in debt. In fact, the average credit card debt per household with credit card debt is $15,601. Not everyone will be able to work their way out of debt, but that’s where debt consolidation and other financial options come in.
Debt consolidation is a means of combining multiple loans. In addition to reducing the number of bills you have to pay each month, it can lower your monthly payments and reduce the long-term cost of your loans or debts.
To consolidate your debts, you’ll take out a new loan. Typically, it will be backed by some of your assets. Once you receive the new loan, you’ll use the funds to pay off your high-interest loans, such as credit card balances and other unsecured debts.
How to Consolidate Debt?
If you are among those carrying high credit card balances — and are paying exorbitant interest rates and/or crippling penalties or late fees — it may be worth it to you to consider debt consolidation. There are a number of workable alternatives, including the following:
Corporate Debt Consolidation Company
Like a consumer debt consolidation companies, a corporate debt consolidation company can negotiate with lenders on your behalf in order to give you more time to pay your creditors, lower your monthly payment and even help reduce the amount you owe, but unlike a counseling agency, it will often charge major fees and commissions.
Some companies can serve as lenders who will offer you a debt consolidation loan, often secured by your home. When you opt for a debt consolidation loan from this type of company, you’re entering into an agreement for the lender to pay off your existing debts now.
You’ll then have one loan — meaning just one monthly payment — due to the lender, which you’ll pay back over a period of time. Your interest rate will be based on your credit and ability to pay back the loan.