Debt Consolidation Loans - Are They For You?
Are you and your family drowning in debt? You are not alone.
Debt is affecting millions of households.
The good news is that there are many options available to you to get out of debt for good.
This first thing you have to do is make a plan.
The best way to start is by writing down all of your current debts to see where you stand.
You then need to come up with a budget.
Try to set aside 10% of your income to savings if possible for emergencies.
Budget for everyday necessities.
Then put as much as you can toward paying off your debt.
Start by paying off the highest interest rate first, but remember to continue to make the monthly minimum payments on all of your other outstanding accounts.
Depending on how much debt you have, you may want to look into consolidating your debt.
This can be done in many ways.
A debt consolidation loan is a loan that takes all of your existing debt and puts it into one loan.
This will usually get you a lower interest rate then you are currently paying.
It also makes you goal easier to see.
Each month pay as much as you can toward the loan.
Once it is paid off, you will be debt free.
The problem with a debt consolidation loan is that if you have a lot of debt, you may find it difficult to get approved for one.
If you can not get a consolidation loan, you may want took into credit counseling.
Credit Counseling is when you get a credit counseling service to contact your current creditors.
They will negotiate lower interest rates and payments.
They will set up a payment plan.
You will make one payment to the credit counseling service and they will make payments to your creditors.
This will get you out of debt in 3-5 years if you make the minimum payments each month.
This is not free.
The counseling service usually adds a fee to your monthly payment to cover their expenses.
This fee should be made clear before you agree to go forward.
If you are already delinquent on your bills and see no end in sight, you may want to look into debt settlement.
This process involves contacting your creditor and asking to settle your debt at a fraction of what you owe.
A creditor will not negotiate this if you are current with your bills.
You may have $5000 in credit with a creditor and to avoid all the hassle of trying to chase you down in the future, they may allow you to pay just $2500 to settle your debt.
There are also many companies that will do this for you.
But do your research on any company that is in this business.
There are many reputable ones out there, but some are not so trustworthy.
The key to getting out of debt is to stay focused.
It has to be your primary objective.
So make a plan and stick with it.
For more detailed information becoming debt free, you may want to check out my blog.
Debt is affecting millions of households.
The good news is that there are many options available to you to get out of debt for good.
This first thing you have to do is make a plan.
The best way to start is by writing down all of your current debts to see where you stand.
You then need to come up with a budget.
Try to set aside 10% of your income to savings if possible for emergencies.
Budget for everyday necessities.
Then put as much as you can toward paying off your debt.
Start by paying off the highest interest rate first, but remember to continue to make the monthly minimum payments on all of your other outstanding accounts.
Depending on how much debt you have, you may want to look into consolidating your debt.
This can be done in many ways.
A debt consolidation loan is a loan that takes all of your existing debt and puts it into one loan.
This will usually get you a lower interest rate then you are currently paying.
It also makes you goal easier to see.
Each month pay as much as you can toward the loan.
Once it is paid off, you will be debt free.
The problem with a debt consolidation loan is that if you have a lot of debt, you may find it difficult to get approved for one.
If you can not get a consolidation loan, you may want took into credit counseling.
Credit Counseling is when you get a credit counseling service to contact your current creditors.
They will negotiate lower interest rates and payments.
They will set up a payment plan.
You will make one payment to the credit counseling service and they will make payments to your creditors.
This will get you out of debt in 3-5 years if you make the minimum payments each month.
This is not free.
The counseling service usually adds a fee to your monthly payment to cover their expenses.
This fee should be made clear before you agree to go forward.
If you are already delinquent on your bills and see no end in sight, you may want to look into debt settlement.
This process involves contacting your creditor and asking to settle your debt at a fraction of what you owe.
A creditor will not negotiate this if you are current with your bills.
You may have $5000 in credit with a creditor and to avoid all the hassle of trying to chase you down in the future, they may allow you to pay just $2500 to settle your debt.
There are also many companies that will do this for you.
But do your research on any company that is in this business.
There are many reputable ones out there, but some are not so trustworthy.
The key to getting out of debt is to stay focused.
It has to be your primary objective.
So make a plan and stick with it.
For more detailed information becoming debt free, you may want to check out my blog.
