When you’re struggling with debt, you may realize that it’s more than you can deal with. Dealing with it alone can leave you feeling hopeless. Even though you may not feel like you have any options left, you may have overlooked debt consolidation.
View your credit report prior to consolidating debts. The first step to fix your debt is to know where it came from. Know how much you’re in debt and where that money needs to go. You can’t fix your finances if you don’t have all the facts.
When checking into debt consolidation programs, never assume that claims of being non-profit are indicators of trustworthiness. Some companies use that term to get away with giving you loan terms that are considered quite unfavorable. Check with your Better Business Bureau or try to find a service that someone can recommend.
Look to see if a debt consolidation company’s counselors are qualified. Do they have certification by specific organizations? Do they have any certifications? You can determine if they are worth using to consolidate your debt if you know this information.
Bankruptcy might be an option for you. A bad mark will be left on your credit report whether you file a Chapter 7 or Chapter 13 bankruptcy. However, if you find your credit situation to already be in poor shape, this option might what you need. You can reduce your debts when you file for bankruptcy.
Never borrow money from someone you’re unfamiliar with. There are many different types of unscrupulous loan providers. Choose a lender who is reputable, trustworthy and comes highly recommended.
Be aware that a consolidated loan has no effect on your credit score. A few debt reduction strategies do have adverse effects on your rating, but a debt consolidation loan is really just helping you lower your interest rate and minimize the total amount of bills you are paying. Staying current is the most important goal.
You may be able to pay off your high interest credit cards by drawing some money from your 401K or retirement fund. This should only be done as an absolute last resort since there are significant ramifications if the money is not paid back quickly. You have to pay taxes and fees for a penalty if this doesn’t occur.
Inquire of the privacy policy. Know what kinds of sensitive information they keep on file and how it is protected. Ask whether encrypted files are used. If it is not, then your credit information may be available to prying eyes which can result in your personal identity being stolen if the computer system gets hacked.
Ask a potential debt consolidation company about their fees. The fees should all be explained to you up front for any services offered. You can’t be charged anything until the company has done some work for you. Don’t do business with an agency that asks for an account set-up fee before they start assisting you.
How did you end up so deep in debt? It is important to think about this. Just treating the symptoms will not cure the cause of your debt situation. Determine what the problem was, fix it, and move forward with paying your debts.
You may be able to use the equity in your home to consolidate your debt. You can use the money resultant from your reduced mortgage payment to pay down your other debts. This may be the answer as it will pay down the debt quicker, plus save you money in the end.
Debt Consolidation
Debt consolidation can dig you out of debt. You should learn more about debt consolidation strategies and apply the tips you just read in this article. There is a lot more to learn about debt consolidation before making a decision.
This is a limited-time offer. We are not able to guarantee availability if you wait!
