How to Consolidate Debt

How to Consolidate Debt

How to Consolidate Debt. Combine your debt into one manageable chunk
to minimize interest rates. You will need Lower interest rates on your
credit cards A card with no interest for six to 12 months A debt consolidation loan, home
equity loan, or home equity line of credit and discipline. Step 1. Stay clear of debt-consolidation firms. They can’t do anything for you that you
can’t do yourself. Remember: Debt-consolidation firms that advertise
themselves as “nonprofit” are not necessarily free. Step 2. Call your credit-card companies and try to
negotiate lower interest rates. Be persistent – if they say no, ask to speak
with someone else, or call back in a few weeks and ask again. Step 3. Check around to see if you can get a new card
with a promotional rate of six months to a year of no interest. Read the small print! Don’t sign up for a card that reserves the
right of “no-reason rate increases” or “universal default,” which means the company
can raise your interest rates simply because you owe money to other creditors. Step 4. If your lowest-interest credit card has available
credit, consider transferring other balances to that card. But do some number crunching first: Exorbitant
transfer fees might make debt transfer pointless. Step 5. Shop around for an unsecured debt-consolidation
loan with a lower interest rate than that of your lowest-interest credit card. If you qualify for one, pay off your credit
cards with the loan. Just be aware that they are nearly impossible
to obtain in a tough economy. Step 6. If you own a home, consider applying for a
home-equity loan or line of credit; the interest you pay is often tax-deductible. Just make absolutely sure you can make the
payments so you don’t put your home in jeopardy. Make sure the loan doesn’t come with a prepayment
penalty. Step 7. Put the brakes on unnecessary spending so
you don’t incur more debt while paying off what you already owe. Did you know The U.S. national debt reached
$10 trillion on September 30, 2008.

13 thoughts on “How to Consolidate Debt

  1. Using a HELOC to pay off your credit card is a horrible idea. Why would you want to play treat your home like a credit card? If you can't pay it, you lose your house. Never use securable debt (house, car, etc) to pay unsecurable debt.

  2. Plz dont read this…30 years ago there was a plane crash and a daughter was left there while her dad left her if you have read this so far keep reading because if you dont post this to 10 vids in 10 minutes she will pop up and kill you gruesomly sorry 🙁

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