Best Debt Consolidation Moves To Safeguard The Financial Future
Best debt consolidation moves? I will tell you all about it down below but before I do that, let's round up our discussion on the three bad moves you can make. The first one is on believing the promises made by the company. And now for the second one: Don't fall into a trap that they will lend you money.
They will loan you money but at what interest? You could end up paying a higher interest than what you have now. They will lure you into the promise that your monthly payment will be lower than the payment you are making now, but believe me, you will end up paying more.
And now for the third bad move you can ever make when trying to do the best debt consolidation move. It is using the balance transfer that the credit cards are trying to sell you. But here is the trouble of this one. Usually this will last only for a few months. You could end up switching from cards to cards. This could ruin your credit report and will end up in a high interest card for you. So what do you do after that?
Now that we're done with worst moves we can make let's go on to the best debt consolidation moves. First thing is your home. Do you own it? If you do then you can access some of the cash in it. There are two things that are open to you when you have equity in your home.
One option is to refinance your home. Take a greater amount than what you owe on your home. Remember to use the proceeds of this to pay off your debt instead of going on a vacation on this money. This loan has a lower interest but the length of time you have to pay for this is longer so this is only a one-time thing.
The other option is to take a home equity loan which will carry a fairly low interest and you know what? The interest you pay is tax deductible. There will be some kind of fees on this type of loan. Plus you probably have to pay for an appraisal and the title insurance.
So are there other best debt consolidation moves? You bet there are. For one thing you can get a personal loan. If your credit is good, you may be able to apply for an unsecured loan. Credit Unions usually have low interest rates, at least better than what you pay to the credit companies.
Here's another way to raise funds to pay off your debt. You can borrow money against your car. It will be a secured loan but you have to watch out. Why? Because you may have to run out of car before you pay off the debt. So there is a need to think of how it will impact your life. But don't worry, next time I will surprise you with other ways to get some money to pay off the debt. What? Rob a bank? Of course not, don't be silly.
You can also call your credit card company and negotiate for a better interest rate. Believe it or not, the person you're talking to is allowed to give you a lower interest rate. So why not tell them to cut your debt into half? So there you are, the best debt consolidation moves.
If you want to make any comments or other feedback, please fill in the contact form below so I can send you my email address. This is to avoid spam.