Four ways to consolidate your debt and what you should know about them
By: Rick Murphy, Contributing Writer
Are you interested in knowing about the ways in which you can consolidate your debt into a single monthly payment? If the answer yes, you should be aware that debt consolidation is considered as the best way you can repay your debt within a short span of time. Debt consolidation has many forms and you need to choose the one that suits your financial needs and budget.
Though every option wants to make repayment easier for you, selecting the one best suited for you will ensure that you can easily repay your debts without falling back on the other debt secured debt obligations. Here are some ways you can combine your debt into one single monthly payment.
- Debt consolidation loan: You can approach a bank or a financial institution so that it can lend you a debt consolidation loan with an affordable interest rate. You have to shop around and get multiple quotes from multiple companies so that you may choose the best loan in the market. You can use the proceeds of the loan to repay credit card debt obligations and then start repaying the debt consolidation loan in single and affordable monthly payments. You can repay the entire amount and also boost your credit score at the same time.
- A professional debt consolidation program: You can also get help from a professional debt consolidation company and enrol yourself in a debt consolidation program. The debt consultant will negotiate with your creditors so as to lower the interest rate on the accounts and revise the monthly payments on the accounts. You just have to write a single monthly check to the program that will be disbursed off to your creditors, until you are debt free.
- Go for balance transfer: You should opt for balance transfer only when you think that you can shop around and take out yet another card that can help you save your dollars. You have to make sure that you get the card with the lowest interest rate and with the longest introductory period so that you may transfer your entire balance within this time. Pay off the balance as you have to boost your credit score as soon as possible.
- You can take out a home equity loan: You can opt to tap the equity in your home so as to reap the benefits of lower interest rates, the extended repayment term and tax benefits. However, think twice before taking resort to this option as you have to assess your repayment ability in order to avoid losing your home from a forced foreclosure due to defaulting on the payments.
When thinking about debt consolidation, you should make sure that you choose the most appropriate option that suits your budget and needs. Determine the budget so that you don’t have to falter while making the payments on time.
About the author:
Rick Murphy is a contributory writer associated with the Debt Consolidation Care Community and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles. To get related help visit: http://www.debtconsolidationcare.com/
Business News with BITE.
Liked this post? Why not buy the ARB team a beer? Just click an ad or donate below (thank you!)
Liked this article? Hated it? Comment below and share your opinions with other ARB readers!