Having to face a mountain of debt each month is not something anyone wants to go through. However, this is a very common situation, particularly for people who need debt consolidation. Keep reading in order to find out about some great debt repayment assistance options for your situation.
Don’t make a debt consolidation choice just because a company is non-profit. This is not always an indication of how ethical they are or how well they serve their customer base. It is a good idea to check with your Better Business Bureau to find out their ratings and reputation.
Are you on life insurance? If so, consider cashing in your policy and using the funds to pay down your debt. Speak with the insurance agent you have and see what you’d be able to get taken out against your policy. Sometimes you’re able to borrow just a little of what you’re investing into the policy so you can pay off your debt.
If you’re a home owner, you might need to think over getting your home refinanced and using that money to help with your financial situation. With mortgage rates at their lowest, this is a good time to refinance and take care of your other loans. Your mortgage payment might also be lower now than it was before.
Using your 401-K, you can pay off your debts. This should only be done as an absolute last resort since there are significant ramifications if the money is not paid back quickly. If you cannot pay the money back, you will have to cover taxes, penalties and will not have a retirement fund.
Think about which debts you want to consolidate. Do not include zero percent loans in your consolidation unless the rate is due to expire. Discuss each debt with your debt consolidator to determine which ones should be included.
A well-qualified consumer credit counselor can help you make the best decisions for your financial situation. Such companies work to get your debt managed and combined into a single payment. Using this service won’t affect your credit as badly as other debt consolidation services.
Is the debt consolidation firm you are considering certified? You can use the NFCC to find reliable companies and counselors. This ensures you know you’re making a good decision and using a good company.
Rather than getting a loan through debt consolidation, think about paying the credit cards off through what’s called a “snowball” tactic. Pay off your highest interest credit card first. Then, start paying off the next debt; adding to it the money you would have used for the previously paid debt. It’s one of the best choices you can make.
What has caused you to acquire too much debt? You must decide this prior to assuming any consolidation loans. If you can’t control what caused this situation, then treating this symptom won’t help you in the long run. Find where the problem exists so you can put a stop to it, this way you’re in better shape to pay off those debts.
It’s important to be able to contact your debt consolidation company any time that you may need to do so. You should not hesitate to ask questions or ask for help if you cannot make a payment on time. Always stay informed and ensure that your company is delivering good customer service.
Refinancing your mortgage can be an excellent method of avoiding a consolidation loan. Your mortgage payment may be reduced resulting in more money to pay towards your debts. This could be a wise choice to help you pay off multiple bills with high interest rates.
Real Property
If you find yourself filing for bankruptcy under Chapter 13, debt consolidation companies can work with you to retain your real property. As long as you pay off your debt by a certain time frame, whether it is three or five years, you should still be able to retain possession of both personal and real property. You could also qualify for having your interest eliminated while you’re going through this process.
Though most people don’t want to be in debt, many are. You will find that you can get help from debt consolidation. Keep the above things in mind as you move forward and you should be able to get out of debt.
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