There are many debt consolidation companies that can help you consolidate your credit card debt, but you may also have other types of unsecured debt. If you have a number of unsecured personal loans, student loans and other debt, you can still find consolidation help. Some companies offer assistance with both credit card debt and other forms of debt, while other companies specialize only in certain types of debt such as student loan debt.
Debt Consolidation Companies
Many debt consolidation companies advertise their services to consumers who are deep in credit card debt. Although credit card debt may be the most common form of debt, many debt consolidation companies also work with individuals to consolidate other forms of debt such as department store charge cards, personal loans and lines of credit, cell phone bills, health club memberships, medical bills and legal bills. There are hundreds of nonprofit debt consolidation companies as well as those that operate for profit. CareOneCredit suggest that borrowers carefully research a debt consolidation company before signing up to verify that they are in good standing with the Better Business Bureau.
Student Loan Consolidation
Student loan consolidation allows you to consolidate several student loans into one loan. The companies that offer student loan consolidation typically allow you to consolidate both student loans and parent loans taken out in a parent's name to pay for a child's college tuition. Even a single student loan can be consolidated into a new loan that can be used to change the repayment terms such as altering the due date or the amount owed on the monthly payments. Typically, the consolidating company pays off your current student loans and issues you a new student loan under a new loan contract that sets unique repayment terms independent of those issued by the original student loan lenders.
Mortgage Companies
It may not be the first thought that comes to mind for a debt consolidation option, but mortgage companies have been involved in debt consolidation loans for years. Typically, consumers apply to take out a second mortgage or a home equity line of credit that draws on the equity in their homes. The money can be used for anything you wish, and many borrowers use the loan proceeds to consolidate other types of debt including personal loans, student loans and medical bills. Many mortgage lenders advertise home equity loans and second mortgages as debt consolidation loans to target consumers in debt.
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