Debt Consolidation

Consolidation involves paying off several smaller loans or credit cards with the proceeds of a new larger loan. To qualify for a debt consolidation loan you need collateral, usually your home.

Here you trade unsecured debt, which is bad enough, for secured debt putting your home at risk if you don’t repay the new loan. This is a risk that will last for the full term of the new loan, probably the next 15 to 30 years. If you default on the loan you could lose your home in foreclosure.

In theory the new payment is less than the sum of the old payments because its interest rate is lower. The debt consolidation lender can afford to charge lower interest on your new loan since it is secured, while your unsecured credit cards required a higher interest rate to compensate for the higher risk.

Consolidation loans do not reduce your debt or improve your situation. They improve your creditors’ situation, putting them in the stronger position of having a secured loan instead of an unsecured loan. Worse yet, studies have shown that those who pay off credit cards with consolidation loans often are deeper in debt soon, when they have again maxed out their credit cards.

Simply put, it does not work because you cannot borrow your way out of debt.

Debt Consolidation

Provanta Debt Settlement

• Provides an immediate means for   dealing with delinquent debt.
• Represents a temporary solution for   dealing with delinquent debt.
• Does not reduce debt. Increases the   cost of getting debt free.

• Provides a 1 to 3 year process for   dealing with delinquent debt.
• Is a permanent solution for dealing   with delinquent debt.
• Liquidates debt completely for
  a fraction of the balances due.

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Provanta Debt Settlement

Provanta accepts applicants as clients in its debt settlement program who have credit card debt and other unsecured debt that is beyond their means to repay because they have experienced financial hardships. Debt Settlement is a negotiation with creditors resulting in the forgiveness of debt, usually requiring payment of only a fraction of the full amount due. If you become our client, the goal of your Debt Settlement Program will be to liquidate your unsecured debt in the shortest time possible at the least cost possible.

Danger Signs Of Excess Debt

You make only minimum payments on your credit cards each month.

You are at or near the limit of your credit cards.

You applied for more credit cards in the past year.

You have begun charging small items or essentials like food and gasoline.

You have recently paid a monthly bill using a credit card cash advance.

You are often late paying some or all of your bills.

You are unsure how much you owe creditors.

You are receiving calls or overdue notices from creditors.

You can't envision a life without using credit.

You have no budget.