16 January 2018

Debt Consolidation Choices: the Lowdown

When you are stuck in the deep dark pit of debt, it’s easy for all to seem like its lost. However, most of the time this isn't the case. In fact, you can even get out of debt without having to struggle, scrimp, and save every penny. The way to do this is by consolidating what you owe. This is when you borrow the money to pay off all your debts, leaving you with just a single debt. However, there are several ways of doing this, and some are better than others, so read on to find more about each one.

Get a Loan to Consolidate Your Debt--

One of the best options for getting out of debt is to consolidate by taking out a single loan to pay them all off. Then you just have one payment to make each month. Something that can help you keep better track of your debt, and avoid any late charges and all the interest on individual accounts.

Unfortunately, unless you can get a loan with a low-interest rate, you are really only robbing Peter to pay Paul here, and it can leave you in just as big a mess as when you started. That is why it’s better to examine the other options before you plump for this one.

Use a Consolidation Company-- 

Another choice for dealing with your debt is to look at the best debt consolidation companies accredited by bbb and what they can offer you. Usually, they will be able to pay all your debts off and charge you a single a more reasonable monthly rate. One that is usually worked out on what you can actually afford, while still having a decent quality of life, rather than a figure that is decided on because it is best for the debt company.

Yes, you will still have debt to pay off, but you will only have to deal with one provider and payment. Something that makes it far easier to budget for and keep on top of your debts until they are paid off in full.

Also as the repayment are more reasonable, you can still have a life in the time that you are paying them off. Something that can make all the difference for families and couples that find themselves in this position but have other financial responsibilities like kids, rent, or a wedding to pay for.

Transfer debts to 0% interest--

Another debt consolidation option is to use a 0% credit card to pay off all of what you owe. However, to do this successfully, you have to then aim to get the balance on this card to zero before the interest-free period runs out.

Of course, this can be pretty stressful as you are constantly working against the clock and can incur huge charges and fees if you don't make the payment in time. It is possible to look for another 0% rate on transfers and start the whole process again, but this is a lot of hassle, and you risk not being able to find such an offer and can run into all sort of troubles while attempting to consolidate your debt in this way.

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