If you've amassed a large amount of debt and you're beginning to wonder how you will pay all of your bills, you might consider going the debt consolidation route. Homeowners can submit their personal details below and have a great debt consolidation loan from up to 4 lenders!
Debt consolidation involves taking high-interest balances on a multitude of credit card bills and combining them into a single balance. It can involve a variety of different options, including debt consolidation loans, transferring balances to a zero percent credit card, or a home equity loan or home equity line of credit. Interestingly enough, however, some experts say individuals who take out a home equity loan to pay off credit card debt accumulate similar debt in a two-year period.
The reason for this is simple, accumulating debt is a habit and it is an exceedingly tough habit to break. If your tendency is to overspend, chances are you will continue to do so, even after you've taken out a home equity loan. In addition, if you need debt consolidation, it is likely that you will not qualify for the lowest possible interest rates. Those are reserved for people with the best credit ratings.
Debt Consolidation - What Are The Options?
Having a lot of debt is not uncommon today, and for many, it seems that knowing how to get
out of debt is just about as uncommon, too. If you have a lot of debt and want to find some
relief, there are a number of options that may be available to you.
Still, if you are determined to undergo debt consolidation, there are a few key things you need to know. To begin with, a home equity loan is a fast, simple way to dig yourself out of debt. However, if you have difficulty paying the loan back, you could end up losing your house. In addition, although interest on home equity loans is generally tax deductible, such a tax break could be limited. You may also be tempted to borrow more than you need just because the bank says that you can.
Another possible option is a zero-percent credit card, but you need to be careful about using it. For instance, the zero-percent interest rate may just be an incentive for you to switch cards. At the end of a certain period of time, say 12 months, you'll be back to paying sky-high interest rates. Also, you will only be able to hang onto the low introductory rate as long as you pay your bill on time. If you're late with a single payment, you'll end up paying a much higher interest rate. Additional fees and charges may cause the cost of the credit to soar. In addition, if you end up paying the bare minimum on your credit cards, it will be difficult for you to pay them off any time soon.
What about the conventional debt consolidation loan?
Such a loan can be quite convenient and a real time-saver, enabling you to pay your debt with one single payment each month. You may find that you can get the best rate at a local credit union rather than at a bank. By doing some comparison shopping, you may be able to save quite a bit of money in the long run.
Rebuild.org brings you the latest news headlines related to Debt Consolidation:
- A Flood Of Delinquent Credit Card Debt
Don't let this happen to you. Act now to consolidate credit card debt and save your precious credit rating. Read new information from the New York Federal Reserve.
[August 22nd, 2010] - Debt Settlement Program News: A New Sheriff In Town
Meet the new sherriff, the Consumer Financial Protection Bureau (CFPB). Find out how this new agency will be creating and enforcing new rules dealing with debt settlement programs and other financial services.
[August 9th, 2010] - Americans Reduce Debt, According to the Federal Reserve
Americans are reducing debt, especially revolving debt, at an impressive pace. According to the Federal Reserve's most recent report, revolving consumer debt is down again.
[July 23rd, 2010] - It’s Time To Consolidate Credit Card Debt
Consumers over-burdened with debt hurt the economy. By doing a debt consolidation loan and freeing up more cash to spend every month, the economy can recover faster.
[July 11th, 2010] - Revised Credit Card Statements Provide Impetus to Get out of Debt
The Credit Card Act of 2009 provision to revise credit card statements has been effective in encouraging consumers to reduce debt. Find out how you can get out of debt using the information your credit card company must provide on your statements.
[June 25th, 2010]
Recent articles related to Debt Consolidation:
- More Americans Seek Debt Relief Through Strategic Mortgage Defaults
It’s a scenario that was unthinkable a decade ago, and would have caused previous generations of Americans to live in shame. Yet, desperate economic forecasts and spiraling income rates in some parts of the country have caused more Americans than ever to walk away from their mortgages. This unorthodox attempt at debt relief has even [...]
[September 28th, 2009] - Five Extreme Ways to Get Out of Debt
With financial growth and a positive stock market peeking out from the recession’s storm clouds, it’s a perfect time to think about using our newfound frugality to get out of debt. As Americans earn merit increases and bonuses near the end of the year, it’s time to consider plowing some “found money” toward the credit [...]
[August 23rd, 2009] - Ten Reasons to Get Out of Debt: Dirty Collector Tricks
While many debt collection agencies perform legitimate work for credit card issuers, banks, and other lenders, some rogue collectors have drawn the attention of law enforcement officials for their dishonest and illegal behavior. If you need some inspiration to get out of debt faster, learn about these ten extreme cases of collector misconduct: Submitting false reports. [...]
[August 19th, 2009] - Five Weekly Debt Solutions to Avoid Payment Shock
In an interview with the Longview News-Journal, the Chief Executive Officer of the Consumer Protection interview noted that 37 million Americans found themselves facing debt collectors in 2008. Steve Sussman went on to say that eighty percent of those debtors, with no clear ideas about how to get out of debt, simply ignore the calls [...]
[August 11th, 2009] - Debt Consolidation Loans from Peer Lending Sites
If you’re lucky enough to live in a tight-knit community, your neighbors might consider banding together to help you get out of debt. If you belong to a church, a love offering or an outreach program could help reduce debt while you go through a family illness or job loss. However, if you’re like most [...]
[July 27th, 2009]
