Consolidating debt affect

If you are overwhelmed by debt, you might consider hiring a debt settlement company to help you.

Debt settlement companies negotiate payments with each of your creditors.

For example, the government’s Pay As You Earn (PAYE) and Income-Based Repayment (IBR) programs allow borrowers to make reduced monthly payments based on financial hardship.

But if your income is over a certain threshold, you won’t benefit from these programs.

If most of your liabilities include other types (tax debt, unpaid child support or old parking tickets, for instance), these plans won't help.

Their debt management plans can help you get back on track – but they can also be unnecessary and even detrimental when done through a poorly run organization or for the wrong reasons. These agencies do not make loans, nor do they settle debts.This is often the reason that people cite when they say you shouldn’t combine federal and private loans.But before you dismiss the idea of refinancing, you should first take a look to see if any of these benefits apply to you.Read the other posts in the series here—and get all the info you need to make intelligent decisions about your student loans.And while you’re at it, check out So Fi’s new Student Loan Debt Navigator tool to assess your student loan repayment options. With prevailing interest rates at historic lows, some private lenders offer rates that are significantly better than a high-rate federal loan.

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