Debt Consolidation Credit Counseling In Austin Debt Consolidation Credit Counseling In Austin

Find out more on Debt Consolidation Credit Counseling In Austin Now!

Tuesday, December 23, 2008

Tired Of Being In Debt? Consolidating It Is A Solution

By John Brennan

Business and household debt in the United States is increasing daily. This increasing debt, combined with a falling economy is putting a severe strain on these same businesses and households. With the average American owning 7 or 8 credit cards it is no wonder that debt continues to increase as we spend more and more money that we actually do not have.

More and More Americans will need to become familiar with the words debt consolidation. The unfortunate thing is that chasing ideas beyond ones true capacity is all too common. Borrrowing money on a new credit card to pay off older credit cards only throws you in the hole even deeper. Debt consolidation could be the answer and here are some ways to get more educated on the subject.

What debt consolidation accomplishes is to pay off all credit card and other debt, rolling it all up into a single loan which usually has a significantly lower interest rate and a monthly payment schedule much lower than the combined payments of all the other debts. Through debt consolidation you will witness a reduction in time, expense, and anxiety.

Home Equity loans are the most common way to consolidate your debt. You can use your home as collateral to get a loan. Known as a secured loan, it keeps interest rates lower. This can be the best way to consolidate, but what if you do not own a home. Are there any other ways to consolidate debt?

Yes, there are loans without security or other ways to consolidate, but it gets a bit more difficult. Interest rates will also become higher. Credit card transfers are a possibility but you must pay back the outstanding in a certain time limit.

Life insurance policies and retirement accounts are possible avenues to explore. You may be able to make either a withdrawal of accrued funds or take out a very low interest loan. It is certainly well worth looking into if either of these is available to you. Credit unions can also be a good source of lower interest rate loans. You may have to look around a bit to find one you are eligible for unless you work for a company or belong to an organization which has ties to a credit union. Credit unions can be very helpful in assisting you in managing your money.

There are a number of non-profit organizations whose purpose is to help those in debt reduce their debt or consolidate their debt. These organizations do much of the legwork for you, negotiating with creditors to lower fees and interest rates and helping to find avenues to permanently reduce or eliminate debt. These organizations can usually accomplish debt consolidation much more efficiently and effectively than an individual can.

You certainly don't have to live with debt even though at times you may feel you have no choice. Help is available and debt consolidation can be a very effective tool. You have to play your part by doing what you can not to fall back into debt, admittedly not an easy thing to accomplish. But the only way to become debt free is to work find the tools available and to work at it.

About the Author:

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home