Dealing with too much debt can lead to a great deal of anxiety and stress. If you can barely cover the minimum payments on all your credit cards and other bills every month, a debt consolidation loan may be a good way to get on top of things. There are several things you need to consider first, however.
A debt consolidation loan is essentially a loan for the total of all your existing debt. It may just include your credit card balances, or it may go further by covering other debts such as car loans or department store credit. The consolidation loan is used to pay off all the other debts, leaving you with a single monthly payment which is often at a lower interest rate.
Before you decide to pursue a consolidation loan, there are some alternatives that can help with your debt.
1. Ask For A Lower Interest Rate
Credit cards tend to have the highest interest rates of most debt, but quite often it is as simple as calling and asking them for a lower rate. There are plenty of competing credit card companies just itching for your business and if you call the one you already deal with and ask them to match someone else's rate, 9 times out of 10 they will do so.
2. Manage Debt Effectively
Rather than getting a loan to consolidate your debt, you might simply need to learn how to effectively manage the debt. There is plenty of information available for free on the internet, and most cities have non-profit organizations that will help you with debt management.
3. Bank Loans
If high-interest credit card debt is the major problem, consolidating with a loan from your bank, rather than a debt consolidation loan might be a simple solution. Ask for a low interest loan from your bank.
Consolidation of debts can efficiently save you money and decrease the monthly stress of locating money for multiple payments. If you're dealing with unmanageable debt, this may be the solution for you. - 15465
A debt consolidation loan is essentially a loan for the total of all your existing debt. It may just include your credit card balances, or it may go further by covering other debts such as car loans or department store credit. The consolidation loan is used to pay off all the other debts, leaving you with a single monthly payment which is often at a lower interest rate.
Before you decide to pursue a consolidation loan, there are some alternatives that can help with your debt.
1. Ask For A Lower Interest Rate
Credit cards tend to have the highest interest rates of most debt, but quite often it is as simple as calling and asking them for a lower rate. There are plenty of competing credit card companies just itching for your business and if you call the one you already deal with and ask them to match someone else's rate, 9 times out of 10 they will do so.
2. Manage Debt Effectively
Rather than getting a loan to consolidate your debt, you might simply need to learn how to effectively manage the debt. There is plenty of information available for free on the internet, and most cities have non-profit organizations that will help you with debt management.
3. Bank Loans
If high-interest credit card debt is the major problem, consolidating with a loan from your bank, rather than a debt consolidation loan might be a simple solution. Ask for a low interest loan from your bank.
Consolidation of debts can efficiently save you money and decrease the monthly stress of locating money for multiple payments. If you're dealing with unmanageable debt, this may be the solution for you. - 15465
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