Paying more than the minimum payment and using a debt-rollup strategy can help eliminate debt. But sometimes you need to make a power move: debt consolidation.
Debt consolidation is a form of debt refinancing in which you take out one loan to pay off many other loans, especially high-interest consumer debt.
Debt consolidation can make managing your debts easier because it eliminates the number of creditors to pay each month. It also enables you to obtain an overall lower interest rate on your debt, so you can start working on other financial goals sooner.
1. Enter a debt consolidation program: Many nonprofit companies provide this service. They reach out to your creditors and arrange for you to make one payment to the debt consolidation organization, which is then used to pay your creditors. As part of their service, you get credit counseling that can help you manage your finances.
2. Debt consolidation loans: If you have a decent credit score and/or collateral such as a home, you may be able to get a debt consolidation loan. Your lender will either use the funds you’ve borrowed to pay your debts to each creditor, or deposit the funds into your bank account, so that you can then pay off the debts with the loan proceeds.
Are you ready to take a big step in reducing debt?
Consider all your options, including debt consolidation.
Contact Us: Free Consultation over debt consolidation.