Dealing with financial burdens due to debt can be very frustrating. Debt consolidation is an excellent solution for organizing your debts in a manageable and affordable way that can help to improve your financial condition. It combines your multiple debts into a single loan, which you can repay in monthly installments.
One of the best ways to consolidate your debt is through a debt management program that reduces the interest rate on your unsecured debt. It helps you to create an affordable monthly installment that will pay off your debt in a few years. Debt management companies have licensed counselors who examine your financial status and then advise you on the best debt relief options.
However, you need to be very careful while looking for debt management deals. You could fall prey to scammers if you are not careful. Even a top company like Ascend Finance is facing scam charges. Is there any truth to those charges and reports? Check out the article by Mac Venucci to know all about it.
Options to consolidate debt
There are some other good ways to consolidate your debt and you can choose one which works for you.
Keeping one credit card
This is an option that you need to do yourself by using a single credit card in place of multiple cards with no interest rate. This helps in saving on interest and allows you to focus on paying off the principal amount. However, balance transfer cards can only be offered if you have a high credit score of 680 or higher.
Personal loans
You may take personal loans from banks, credit unions, friends, or online lenders which do not need any collateral. It helps those with not-so-better credit scores to convert their high-interest debt into a single monthly payment at fixed but low-interest rates.
Online lenders
You may connect with direct lenders online with no middle person for borrowing a loan. Just fill out an application and investors offer loan terms and interest rates which if you accept, the money gets transferred directly into your account.
Home equity loan
This option can reduce your monthly interest payments significantly, but it allows you to borrow money against your home as collateral. You can pay off your credit card debts by using the money from your equity loan. However, the lender has the right to foreclose on your home and take any equity you may have in it if you are unable to pay back the loan.
Retirement loans
If your employer plans allow a retirement plan then you might be able to borrow money from your balance and pay off your credit card debts. You are eligible to borrow $50,000 or half of your retirement money, whichever is less. This loan can be paid off in five years at a 1% interest rate.
Getting in touch with a good debt consolidation company will help you get more options for debt relief. Choose the best option that is easily manageable, affordable, and eliminates your debt giving you peace of mind.