If you struggling with debt across multiple credit cards, loans, and other accounts? You’re not alone. Consumer debt is at an all-time high, with the average household carrying nearly $15,000 in credit card debt alone.
The good news is that debt consolidation can provide a lifeline to simplify and streamline your payments. United debt consolidation combines all of your debts into a single, manageable payment each month. Not only can this relieve the stress of juggling multiple payments, but United’s service can secure you lower interest rates – meaning more of your money goes toward paying down the principal debt.
In this post, we will explain the basic things you need to know about United debt consolidation – how it works, whether you qualify, the pros and cons, and more.
What is United Debt Consolidation?
United Debt Consolidation is a debt management program from the non-profit credit counseling agency United Credit Counseling. The United program consolidates your unsecured debts like credit cards, medical bills, personal loans, payday loans, etc. into a single monthly payment.
The goal is to help you pay off debt faster by reducing interest and creating affordable payments. United is a BBB accredited nonprofit that provides free credit counseling as part of the program.
Pros and Cons of United Debt Consolidation
United’s debt management program has many benefits, but there are also a few drawbacks to consider:
- United secures drastically reduced rates from high credit card APRs.
- Much easier to budget around just one monthly bill.
- Clear timeline for paying off debt within 3-5 years typically.
- Paying on time helps credit scores over time.
- Get professional guidance from United’s certified counselors.
- United charges an upfront enrollment fee based on debt size.
- United negotiates but can’t guarantee creditors will agree.
- If you miss a united payment, late fees apply just like a credit card.
- If you can’t complete the program, any remaining debt won’t be forgiven.
As with any solution, there are pros and cons with United. But for many, the potential to save thousands in interest and take control of debt repayments makes consolidation worthwhile.
United Debt Consolidation Vs. Debt Settlement
If you’re researching debt relief options, you may wonder how United debt consolidation compares to debt settlement. Here are the key differences:
- Consolidation restructures your current debt by changing interest rates and payment terms. Your balance stays the same.
- Settlement negotiates a reduced lump payoff amount by agreeing to close accounts. This can impact credit badly.
- Consolidation maintains your credit score as long as you stay current on payments. Settlement will likely negatively affect scores.
- Consolidation stretches out repayment over years. Settlement is designed to lump sum settle debts faster.
For many, consolidation through United is less risky and more beneficial for long-term credit health compared to settling debts. But settlement can eliminate balances quicker in some cases.
Who is United Debt Consolidation Best For?
United’s program is a great fit for certain situations:
- People with steady income
Since you make consistent payments to United, you need reliable monthly income to avoid falling behind.
- Those disciplined enough not to rack up more debt
Consolidation gives you a clean slate to pay off debt, but you’ll need to avoid running balances back up on credit cards.
- Anyone wanting simplicity
If have five, six, or more payments stressing you out, consolidation massively simplifies financing.
- People with debt across multiple accounts
For high balances on a single debt, other solutions may work better. Consolidation benefits those with a few or several accounts.
Overall, United’s program is worth considering for anyone motivated to become debt-free. Just be sure you can realistically commit to the monthly payments long-term.
Requirements to Qualify for United Debt Consolidation
To be eligible for United’s debt management program, you must meet the following requirements:
- You need to have a minimum of $10k across multiple unsecured accounts like credit cards, medical bills, etc. This allows enough debt to consolidate.
- To qualify, you must have steady monthly income to maintain the proposed debt payments long-term. United looks for reliable income.
- United does not require perfect credit or exclude anyone based on credit score. They work with all credit ranges.
As long as you meet those criteria above, United will review your specific situation to create a personalized consolidation proposal. This is a free consultation with no obligation to enroll if you decide it’s not the right solution.
How to Apply for United Debt Consolidation
Ready to explore whether United’s debt consolidation program is right for your situation? Applying is easy. Here are some tips for applying for United debt consolidation:
Gather All Your Financial Information
This includes statements for all your debts, income documentation like pay stubs, and a list of your monthly expenses. Having all this info ready will make the application process faster.
Check Your Credit Reports and Scores
Debt consolidation lenders will check your credit as part of determining your eligibility and interest rates. Review your reports for errors and get your scores ahead of time so you know where you stand.
Choose A United Debt Consolidation Program
United offers balance transfer cards, personal loans, and home equity loans for consolidation. Compare to see which makes the most sense based on your debt amount, rates, and goals.
Fill Out the Application Completely and Accurately
Online applications are common. Have all your financial info and documents ready to input the correct numbers. Double check before submitting.
Be Prepared to Provide Verification
After applying, you may need to provide additional documentation to verify income, debts, and other application details. Respond promptly to requests.
Accept the Terms
If approved, be sure to thoroughly read the consolidation agreement terms before signing. Make sure you understand the new interest rate, monthly payment, fees, and loan length.
Set Up Autopay If Required
Many lenders require enrolling in autopay to get the best rates. Be sure your payment due date aligns with your pay schedule.
United’s debt management program has helped hundreds of thousands of consumers across the country pay off debt and reclaim financial freedom. If you’re carrying overwhelming balances, consider how consolidation could transform your finances for the better.
The first step is to connect with United’s experts for a free evaluation. They can show you exactly how much consolidation could save you each month and year. Take can fix your debt once and for all with United.