If you are in debt, you have several options available to you in your quest to consolidate your balances and thereby reducing your monthly payments or paying off your loan faster. Let's look at 7 of the most popular and effective ways for you to consolidate your debt.
1. Life Insurance. Yes, many life insurance policies have a cash pay out [loan] provision. If you have held the policy for quite some time, the amount of equity built up in it can be quite large. What if you can't pay the insurer back? Good question! In many cases the amount you owe will be deducted from what your beneficiaries would receive upon your death.
2. Your Retirement Plan. If you have a 401(k) plan at work, you can usually borrow from the account and use these funds to pay off debt. Caution: if you do not pay back the loan within a certain specified time or you leave your job, you could be faced with penalties and tax charges from the Internal Revenue Service.
3. Credit Card Transfers. Chances are some of your outstanding loans are for double digit rates. Shop around and see if a credit card company will allow for you to transfer your outstanding balance over to them and at a significantly lower interest rate. Make sure that the cash transfer fees are low [better yet, see if you can have this fee waived] and that your interest rate remains fixed.
4. Home Equity Loans/Lines of Credit. If you own your own home, it is likely that you have built up equity in your home especially if you have lived there for several years and you live in an area of rapidly appreciating home values. If this is the case, lenders will be glad to offer to you a loan or line of credit based on your home's value. You can use the loan/line of credit to pay off debt; in many cases the interest rate for the loan/line of credit is tax deductible too, whereas for a credit card debt it is not.
5. Renegotiate Your Loan. Some lenders will be all too happy to lower your outstanding interest rate, especially if in doing so they get to keep you as a customer. Sure, your 19.8% rate may only drop to 14 or 15%, but that may be all you need to get a handle on your debt.
6. Your Savings Institution. Banks, savings and loan associations, and credit unions may be able to help you consolidate debt by offering to you one loan that will pay off all your debt and allow for you to have a low, fixed-rate payment instead. Shop around, the rates vary!
7. Go to Mama! Family loans are a popular way to get rid of debt. Still, if you can't pay them back, what effect will that "non-payment" have on your relationship with your family member? Sure, it may not effect your credit standing, but it certainly could have a negative effect on your family standing!
Naturally, you will want to explore each of these options and see which ones are the most feasible for you. Read the fine print and make sure you understand the terms of any debt consolidation loans. You want to reduce your debt, not create an avenue for further trouble.
Matt Keegan is The Article Writer who writes on subjects from Aviation to Zoos. Please contact Matt for your next article needs at http://www.thearticlewriter.com
There are many benefits in choosing a Debt Consolidation Loan,... Read More
Whether you're wanting to consolidate your debt to avoid bankruptcy,... Read More
If you believe in the good in people then you... Read More
If you're thinking about using a debt consolidation or debt... Read More
Many different types of financial aid are available to you... Read More
Are you the victim of a high interest rate auto... Read More
The automobile has long been recognized as the classic American... Read More
Consolidating loans makes sense but only if you can pay... Read More
It is quiet easy to get into financial difficulty having... Read More
Here is a useful guide to Debt Consolidation Loans. A... Read More
If you're looking for the best way to reduce the... Read More
A Consolidation Loan allows you to combine your federal student... Read More
As any report on the subject will reveal, million of... Read More
Over recent years personal debt in the UK has exploded.... Read More
Sometimes life can get on top of you and out... Read More
Debt Consolidation is a solution that solves your debts. Debt... Read More
Finding solutions to reducing your debt takes some thinking and... Read More
If you are in debt, you have several options available... Read More
Feeling like you're on the brink of financial disaster? You're... Read More
A Debt consolidation program starts with evaluating your financial situation.... Read More
If you have decided that a debt consolidation loan is... Read More
Last week, a security exploit at CardSystems Solutions, Inc, a... Read More
Before letting too much debt or too many payments get... Read More
Debt consolidation companies have dotted the debt solution landscape as... Read More
There was a time when incurring debts was looked down... Read More
Debt consolidation loans can be the answer to a number... Read More
A consolidate student loan is the perfect solution for people... Read More
Debt consolidation is frequently becoming a very familiar term used... Read More
Are you having a problem paying your bills? Are you... Read More
Yes, Debt Cosolidation isn't a good idea and I'll tell... Read More
Is there something out there called a bad credit credit... Read More
Someone great once said that 'if it isn't the sheriff,... Read More
One of the most common social diseases remains dormant for... Read More
There are many benefits in choosing a Debt Consolidation Loan,... Read More
Credit counseling organizations do not lower your credit score when... Read More
It is said that a pet tiger cub can become... Read More
Many different types of financial aid are available to you... Read More
Debt consolidation programs can help you lift the burden of... Read More
Recently passed by Congress, the Bankruptcy Abuse Prevention and Consumer... Read More
You're not alone. Many people face a financial crisis some... Read More
When someone is extremely deep in debt, and he or... Read More
Eliminating your debt is a daunting task. What can you... Read More
If you've ever been in a situation where you needed... Read More
Student loan consolidation is one of the most used methods... Read More
Debt Consolidation of Different LoansDebt consolidation refers to the restructuring... Read More
Consolidating credit card debt is never easy. Too often people... Read More
The Debt Settlement process involves negotiating with your creditors to... Read More
Before letting too much debt or too many payments get... Read More
Are you feeling overburdened with debt? Are you paying out... Read More
Believe it or not, many people do not understand equity... Read More
Debt consolidation companies have dotted the debt solution landscape as... Read More
For many people the lure of easy credit has taken... Read More
Your credit card bills are stacking up and for whatever... Read More
No-Cost Student Loan ConsolidationA no-cost student loan consolidation ? doesn't... Read More
If you are looking for a company that will help... Read More
Planning to devise a permanent solution to the problems of... Read More
With the popularity of plastic money in the present age,... Read More
The automobile has long been recognized as the classic American... Read More
Debt consolidation has become big business in this country over... Read More
Debt management fees can vary vastly from one company to... Read More
On the surface, debt consolidation loans offer cash-strapped consumers some... Read More
When it comes to debt consolidation some people dream of... Read More
Have you ever seen a commercial or an ad promising... Read More
If you are in the market for a low interest... Read More
If your debt is becoming difficult to get on top... Read More
Deciding to file for bankruptcy is a decision that should... Read More
Debt Consolidation |