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TRENDING BASIC MONEY MANAGEMENT TIPS
11.05.2020 / Budgeting « Back to all articles
Top Debt Consolidation Options
Managing your daily finances can be a struggle, especially when you have a substantial amount of debt. Though some debt with a home mortgage or vehicle loan is expected during a lifetime, credit cards, student loans, medical bills, or other financial responsibilities can be draining. For many, the term "drowning in debt" refers to the helplessness they feel to stop the flood of collections calls, monthly payment reminders, or past due notices. Debt consolidation is a way to ease up the financial pressure you may be feeling.
Use Balance Transfer Cards
While getting out of debt may take some time, transferring your high-interest credit cards to another card with an introductory offer of zero interest or other low rate is one way to stop the debt from snowballing as quickly. This works in a pinch if your monthly payments are too high, but only those with good or excellent credit often qualify for better rates.
Transferring your debt to another card doesn’t eliminate your debt. And, if you aren’t careful, you could make your situation worse. Late payments can result in the loss of the introductory-APR, and if the balance isn’t paid by the end of the promotional period, you could see retroactive interest charges appear on your card. You may also be charged a fee to conduct the transfer.
Use a Debt Consolidation Loan
If your credit is fair, you may want to consider a consolidation loan. Once again, you aren’t getting rid of your debt, but altering the situation to where it is more manageable. If you have several lenders you are trying to pay, a consolidation loan can be used to pay off the various accounts, leaving you with just one bill to pay each month. With one interest rate and payment schedule to manage, you will know exactly where you stand with your debt and when it will be paid off.
Watch the interest rate on loans used for consolidation, especially if your credit has been hurt by your debt levels or payment history on other accounts. Always be on the lookout for scams and do your due diligence before you sign any paperwork.
Research Debt Management Plans
Credit counseling services are another way to make your debt more manageable. You can use these agencies to negotiate lower interest rates or extend the payment terms for your account. Debt settlement is another option, but in this process, your total amount owed may be renegotiated. Bankruptcy should be a last resort but is another way to get out from under a financial burden that seems impossible. Be careful when choosing any of these options, as there are serious consequences to your credit report that can last for years.
Credit Talk
11.05.2020 / Budgeting « Back to all articles
Top Debt Consolidation Options
Managing your daily finances can be a struggle, especially when you have a substantial amount of debt. Though some debt with a home mortgage or vehicle loan is expected during a lifetime, credit cards, student loans, medical bills, or other financial responsibilities can be draining. For many, the term "drowning in debt" refers to the helplessness they feel to stop the flood of collections calls, monthly payment reminders, or past due notices. Debt consolidation is a way to ease up the financial pressure you may be feeling.
Use Balance Transfer Cards
While getting out of debt may take some time, transferring your high-interest credit cards to another card with an introductory offer of zero interest or other low rate is one way to stop the debt from snowballing as quickly. This works in a pinch if your monthly payments are too high, but only those with good or excellent credit often qualify for better rates.
Transferring your debt to another card doesn’t eliminate your debt. And, if you aren’t careful, you could make your situation worse. Late payments can result in the loss of the introductory-APR, and if the balance isn’t paid by the end of the promotional period, you could see retroactive interest charges appear on your card. You may also be charged a fee to conduct the transfer.
Use a Debt Consolidation Loan
If your credit is fair, you may want to consider a consolidation loan. Once again, you aren’t getting rid of your debt, but altering the situation to where it is more manageable. If you have several lenders you are trying to pay, a consolidation loan can be used to pay off the various accounts, leaving you with just one bill to pay each month. With one interest rate and payment schedule to manage, you will know exactly where you stand with your debt and when it will be paid off.
Watch the interest rate on loans used for consolidation, especially if your credit has been hurt by your debt levels or payment history on other accounts. Always be on the lookout for scams and do your due diligence before you sign any paperwork.
Research Debt Management Plans
Credit counseling services are another way to make your debt more manageable. You can use these agencies to negotiate lower interest rates or extend the payment terms for your account. Debt settlement is another option, but in this process, your total amount owed may be renegotiated. Bankruptcy should be a last resort but is another way to get out from under a financial burden that seems impossible. Be careful when choosing any of these options, as there are serious consequences to your credit report that can last for years.
