What Is Accelerated Debt Consolidation?
If you are covered head to toe in piles of debt, accelerated debt consolidation could be the best solution for your debt dilemma.
Almost everyone faces this situation at some or another. Most people take one of several ways of getting out of this debt trap: they join a credit consolidation program, which counsels them on credit management; or they apply for debt consolidation, which refreshes their current finance
management plan and puts them up for a brand new, custom financial plan.
If you have a relatively bad credit score and unmanageable, massive debts, accelerated debt consolidation is probably your best option.
Accelerated debt consolidation is similar to other regular debt consolidation programs. The only difference is that it separates the two kinds of debts: unsecured and secured debts. All unsecured debts are included for consolidation by the accelerated debt consolidation; whereas none or some secured debts will be included.
Unsecured debts are contracts with your creditors to repay them for credit borrowed that do not include collateral. Some of the most popular and frequent examples of unsecured debts are credit cards and personal loans.
Secured debts, on the other hand, are loans or finance packages that force you to offer collateral in exchange for a certain amount of money or credit with the agreement that you will repay the loan. Some types of secured debt include mortgages, car finance, and loans on personal property. If you fail to pay your creditor in this case, you will lose your car or house or property.
Most accelerated debt consolidation programs will not include your secured debts; they will only take your unsecured debt.
If you are currently in trouble with your creditors and may need to apply for debt consolidation in the future, you should keep this in mind. If you accumulate too many secure debts, you will have a much harder time applying for debt consolidation, especially if you want to get faster plans and lower rates through an accelerated debt consolidation program.