You may have noticed that these days there are so many companies offering debt consolidation services to “cut your payments in half”, “reduce your interest rate,” and “speed up your freedom of debt”. Basically, the debt consolidation is an effort to change some high interest loans into a single loan with an interest rate that is much smaller.
Unfortunately, it does not always work as expected earlier, as many people see them have to pay more money than they paid before. For example, in the case of home equity, some people are forced to give up their home to be taken. However debt consolidation is one of the recommended ways to accelerate one’s freedom of debt. This post will provide for you a few tips to resolve debt issues, including how to consolidate debt.
Learn your credit report and FICO score
You should be aware that every loan is always based on the condition of your credit score, so you have to really understand where you are. If you find that you’ve reached a reasonable credit rating then you can earn quite low interest rates.
Consider all options
You should prioritize loans with high interest rates and pay your debt as much as you can. By doing these two steps then you can speed up your freedom of the shackles of debt.
Contact your credit card company
You should contact your credit card company for the purpose of negotiating in two directions. The two direction-negotiation is very important because it can help you in obtaining lower long-term interest rate or even no-interest introductory rate. Before applying for an introductory rate of no interest, you have to really understand what your rate will be after the introductory period.
Contact a credit counseling agency
Professional credit counseling agency can provide advice on what to do to manage your debt and also design the budget. However you should be wary of any impetus into debt management programs that are not compatible otherwise you simply will plunge yourself into a new problem.
Contact a debt consolidation agency
You can contact a debt consolidation agency either conventionally or online. Every decision lies in your hands. If you contact a debt consolidation agency then they will communicate with your credit card company. They will conduct all necessary negotiations to change your multiple debts into a single debt with low interest rate.
Get money from your life insurance
This method is not very advisable, but if you are in an emergency situation then you can borrow from your life insurance.
Use an online calculator
By using an online calculator so you can compare what should be paid at this time with what should be paid when you have done debt consolidation. This electronic device is very helpful for some people who feel confused in deciding whether they should be involved in debt consolidation or not. I hope this article can give you some considerations in managing your debt.