Consumer Credit Debt Consolidation – What Are Your Options?
The average person carries about eight or nine credit cards! And if you have a lot – or even more – you might find a way to consolidate your debt into one, easy monthly payment. Fortunately, you have several options for consolidating your debt. You might want to consider:
If you are a homeowner, a Home Equity Loan, a Home Equity Credit Line or a Second Mortgage is probably the cheapest way for you to borrow some cash for debt consolidation. By utilizing the equity in your home, you can pay off your creditors so that you only have one creditor – your Home Equity lender – to worry about every month. If you are not a homeowner, you may still be able to get a personal loan with a relatively low interest rate if you use valuables that you have as collateral, such as your car, boat, stock or bond, or jewelry. .
Another credit card.
Of course, the idea of getting another credit card might sound crazy and irresponsible. But the key is to register for a low interest card and then transfer ALL balances from your old card to the new one. That way, you have combined all your credit cards into one. And you don’t need to register for a new account if you already have a card that has a zero balance plus low interest. In this case, you can simply transfer your other credit card balance to the low interest card that you already have. Whatever it is, this is a simple and relatively painless way to consolidate your debt.
Get professional help.
Can you qualify for a new loan or credit card? Maybe you need professional help. Debt consolidation companies – also called debt management companies – can help you reduce interest rates, reduce minimum payments, and consolidate your debt into one monthly bill. You can find a debt consolidation company by searching online, asking friends and family, or checking your local yellow pages.
Whatever choice you choose, debt consolidation can help you take control of your financial life. By combining several credit card payments into one bill, it’s easier to make monthly payments on time. In addition, many debt consolidation options allow you to reduce interest rates and minimum payments, which can help you save money and pay off your debt faster.