Did you know that household debt has risen in the last year? Mortgages, auto loans, and student loan debt has increased substantially. The financial situation for many people has gotten worse, making some deplete their savings and accrue even more debt.
Are you in debt as a result of some loans you had to take out in the past? Luckily, there are ways to take action and break free of the financial burden of debt. Learn about debt consolidation and how it can help you!
Personal Loan
If it is available to you, one of the first ways to consider consolidating your debt is to take out a personal loan. If your bank can offer you a better interest rate than the interest rates on your loans, it is worth paying off loans that way and combining them into one loan with a lower payment. Then you’ll have more cash flow and can pay off your one loan faster than the old multiple loans.
Credit Card Debt Consolidation
If you have balances on multiple credit cards, you might want to consider transferring them to a card that offers 0% interest for a year. Then you can pay down the balance in full during the year to avoid high-interest rates the year after. This kind of option is usually available to those who have a credit score of 690 or higher.
Get Credit Counseling
If you aren’t able to consolidate or pay off your debt in a year, look into credit counseling. A reputable service will come from a non-profit agency, and their goal is to help you avoid bankruptcy and reduce your debt by negotiating with credit card companies, having late fees waived, and more. A good counselor will also help you learn about money management.
Enroll in a Debt Management Plan
For those who need debt relief for credit card debt, a debt management plan might be a solution. This is run through a credit counseling agency that negotiates with your credit cards to consolidate them to make one reduced monthly payment. However, this means that all of your credit cards will be canceled and you won’t be able to use them–so make sure this is the right path for you before making a decision.
Payday Loan Help
Many people have taken out payday loans and struggle with repaying the high-interest rates attached to that loan. If you need payday loan help there are companies out there who can assist you in breaking the cycle of debt.
Are You Ready To Consolidate Your Debt?
Now that you’ve learned about debt consolidation, you can take action. You can take out a personal loan or consolidate your credit card debt on one card at 0% for a year. Or enroll in a debt relief program with a debt counseling agency and get financial planning advice for the future so that you avoid going into debt again.
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