Debt Consolidation
Are your debts out of control? Do you have to put off paying bills you can't afford? Are late fees and interest payments eating up your money? Well debt consolidation can be the most important step that you take in order to regain control of your finances. There IS help out there.
Just Remember:
- Don't panic. There are things you can do to get your debts under control.
- Help is available from financial counsellors and other free advisory services.
- Don't ignore your debts. You will end up in a worse position if you do nothing.
No matter what the cause of your debt is, you owe it to your self to get your finances back on track. Do not let your pride get in the way of asking for help. We all need financial help at some time.
Consider transferring credit card balances to one card. Check to see what the maximums are on your cards, and choose the one with a low Annual Percentage Rate (APR). Make sure the APR is not higher for balance transfers. Contact your current credit card issuer to find out what interest rate/APR they will offer you transfer balances from your other credit cards to theirs.
Refinancing your home mortgage can not only lower your monthly house payment, it will give you extra money to use to pay off other bills and debts that need paid off.
A home equity loan or line of credit lets you borrow money against your home. You can often get these types of loans at lower rates than credit cards or personal loans. Not only will you get a good interest rate, it may be tax deductible. Many issuers offer low closing costs or no closing costs for these loans. Use this option with care. You will end up with less equity in your home, which will take time to earn back.
A part of the 2010 economic stimulus package is to encourage people who are in debt to seek the professional assistant of debt counselors. Plans are designed to help you with whatever your current needs are.
Debt consolidation is taking all of your debts, or outstanding balances and combining them into one lower payment. Both secure and unsecured loans can be combined to help lower your monthly bill.
Most often, debts have different interest rates, as well as different pay off dates. A professional debt consolidator, can combine all of those payments into one that is more affordable for you.
In order to qualify for the loan modification program, you have to agree to some terms. You must agree to go for debt counseling if your total household debt totals more than 55% of your income. Your household debt includes auto loans, credit cards and alimony.
Debt consolidation is not about getting extra spending money, it is just a way to get your debts paid off faster, and at a lower amount. With additional debt consolidation options available to citizens via the Federal Stimulus Plan, there is no better time than now to seek the help of a debt consolidator.