Debt Consolidation: The Best Tips, Tricks, And Strategies – Part 1

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Is debt overwhelming your life? Do you want to control your debt? If you answered yes, you may find that debt consolidation may meet your needs. The following tips will clarify the process to do this. Use the advice here to help you get on the path to better financial freedom.
 
Find out if your debt consolidation agency’s counselors are licensed. They should be properly certified. Are they backed by well-known entities? This is a great way to figure out whether the company you are considering is worth your time.
 
Avoid choosing a debt consolidation company only because they are non-profit. Contrary to what you may believe, “non-profit” does not always equate to great. You can easily check to see if the company is reputable by contacting the BBB, which stands for Better Business Bureau.
 
One option to consider in debt consolidation is that of using an introductory low-rate credit card to pay off your debts. Along with pocketing saved interest, you will find it more convenient to make just one monthly payment. The single payment would be made to the credit card company, as opposed to making several to individual creditors. After combining all your debts into one credit card, focus on paying it down before that introductory offer ends.
 
If you own a home, you may want to consider refinancing your home and taking the cash and paying yourself out of debt. Mortgage rates are very low, which makes this idea even more attractive. You may be surprised by how low your house payment will be, too.
 
Take out loans for outstanding debts and call your creditors in order to negotiate a type of settlement. Many will accept as much as 70% of that balance in one lump sum. This can actually help your credit score.
 
These types of consolidating loans typically have zero effect on your credit rating. Although certain debt reduction strategies will negatively impact your credit, consolidation loans simply assist you in reducing your bills and interest rates. It can be a very powerful tool as long as you stay current on your payments.
 
You might be able to get a temporary loan from your friends or family if you cannot get one elsewhere. Make the details of the agreement perfectly clear, and pay it back as promised. You should not risk damaging your relationship with them.
 
Persons looking to consolidate debt might be able to do so with a personal loan from a friend or family member. However, this should be a last resort because you never want to owe a family member money when you’re going through tough financial times. Only borrow money from someone your know if you have no other options.
 
Your consolidator should personalize their plans for you. If they don’t ask about your personal situation or push you to sign on the dotted line, back away. Find a debt consolidation counselor who will take the time to find a strategy adapted to your situation.
 
If you need help organizing your finances, research several debt consolidation agencies. Inquire with the BBB to make sure you can trust your chosen company.

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