Chloe Meltzer | October 19, 2022
Summary: Thinking about debt consolidation? If you're considering PCG Debt Consolidation, you might want to read this review.
Whether you are struggling with credit card debt, student loans, or auto loans payments can pile up and you might find yourself falling behind on debt. Debt consolidation is one option available to help consumers, and PCG is an institution that works to facilitate it.
Debt consolidation is the act of placing multiple debts into one loan or balance transfer card. The idea is that you finance all of these payments into one payment, with a lower interest rate. Lenders such as PCG is an institution that specifically deals with debt consolidation loans and aid.
Choosing debt consolidation is typically something that is done in desperation. Although it may put all of your finances into one bill, it may not fix all of your financial problems. Because of this, you need to understand when it's worth it to work with PCG, and when you should avoid their debt consolidation services.
There are two main options when it comes to debt consolidation. The first is a standard personal loan. This loan would pay off all of your other debts, and give you one monthly payment to work with. The second option is with a balance transfer credit card. This is when you obtain a new credit card offering a 0% APR for a specific amount of time. Usually, the amount of time is between six months and two years.
If you have multiple loans with high interest, then debt consolidation might be a good option. Despite this, if your credit score is very low then you may not have the opportunity to obtain a loan at a lower interest rate.
Debt consolidation is not for everyone, especially if you tend to have poor spending habits. In some cases, you may even put yourself into worse debt due to spending more on the credit cards you recently paid off with your debt consolidation loan.
One single payment: When you consolidate your debt, typically this means that you pay off all your existing debts to have one single payment. This can make it easier to budget and pay off debts. It can also help you to improve credit by avoiding late and missing payments. This also helps you create a plan to pay off your debt sooner
Quicker payoff: If your new debt consolidation loan has a lower interest rate than your old loans, you may be able to pay off your debt sooner. This is because you can spend more money on the actual loan, versus fees and interest.
Potentially lower interest rate: If your credit score was originally lower when you applied for your first loan, you might be able to lower your overall interest rate. Although it may not seem like a lot all at once, even a small increase can eventually save you money over the entire life of your loan. Some debt comes with higher interest rates than others so it is important to consider this. For example, credit cards usually have much higher interest rates than a student loan, therefore a balance transfer may not be the best option if you cannot pay off your loan within the allotted period.
Potentially lower payments: Debt consolidation usually means that your monthly payments will be lower because you are spreading out your debt over a longer period. If you are not making a huge sum of money each month, this might be something you are interested in. The only downside is that this could mean your total payment over time will increase.
Might improve your credit score: Although applying for a new loan may make your credit score go down temporarily, eventually it will help raise your credit score. Paying off your debt such as credit cards and revolving lines of credit will definitely raise your score, along with regularly paying off your loans.
You may end up with more costs than originally planned: Because debt consolidation services often charge a fee. Other fees come along with debt consolidation such as origination fees, balance transfer fees, closing costs, and even annual fees.
You may accidentally raise your interest rate: If your credit score is less than average, you may not be able to access good rates. This could leave you with a higher interest rate than what you started with, along with all of the fees.
You may end up paying more interest over time: Although your interest rate might go down, you still may pay more in interest over time. This is because the timeline will start over with the new loan. Sometimes the period may be as long as seven years. The only reason why this may work out is that you might have more payments and a longer time to pay it off. Despite this, you should always budget for more than your minimum payment. This will make sure you can avoid some of the added interest.
Missing payment could be a serious problem: If you miss payments on any loan then you will hurt your credit score immensely. If you are already looking for debt consolidation, then you most likely cannot afford another hit to your score. Be sure to place your loan on autopay to avoid missing payments.
It may not change your habits: Because debt consolidation can simplify payments, it is a good method of looking to correct a bad financial situation. Despite this, it will not address your habits. You may end up getting in worse debt than you originally were in. This can occur because of increased spending on your newly vacated credit cards. It can be easy to fall back into the debt trap.
PCG Debt Consolidation does not have a great track record with its clients. In fact, the Better Business Bureau has a variety of complaints regarding this business. If you are serious about debt consolidation, it is important to make a budget, reduce your spending, and pay your minimum payments. Regardless of your choices, it is essential to avoid getting into a worse debt situation than before.
SoloSuit makes it easy to respond to a debt collection lawsuit.
How it works: SoloSuit is a step-by-step web-app that asks you all the necessary questions to complete your answer. Upon completion, you can either print the completed forms and mail in the hard copies to the courts or you can pay SoloSuit to file it for you and to have an attorney review the document.
"First time getting sued by a debt collector and I was searching all over YouTube and ran across SoloSuit, so I decided to buy their services with their attorney reviewed documentation which cost extra but it was well worth it! SoloSuit sent the documentation to the parties and to the court which saved me time from having to go to court and in a few weeks the case got dismissed!" – James
Here's a list of guides for other states.
Being sued by a different debt collector? We're making guides on how to beat each one.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.