Friday, 2 October 2015

Consolidating Debt To Pay Them Off - Which Is The Best Option For You?

Posted at  08:14  |  in  Finance

best ways to consolidate debts
We are an entire nation full of high interest debt and it doesn’t seem that things will get better with time. As per data that is released by the Federal Reserve, revolving debt among the Americans increased to $4.4 trillion while non-revolving debt soared higher than ever before to $2.42 trillion. Irrespective of whether you owe on student loans or on credit cards, the impact of debt is same on your life. It will rip you off the necessities and force to devote all your money towards the interest rates, the fees and the hefty sums of money.

Here are some best ways to consolidate debt

  1. Balance Transfers:

    If you’re looking forward to only consolidate your credit card debt, you can opt for the balance transfer method. All you have to do is to request for a balance transfer card that carries a nominal interest rate for a maximum period of time. This offer is known as the introductory period and most cards offer you up to 6 months time to rejuvenate your finances. The idea behind combining your cards through a balance transfer is to transfer the entire high interest balance into the new card within the completion of the introductory period. This is a big deal for you if you have a moderate credit score.
  2. Personal debt consolidation loans:

    You may also get in touch with a lender and borrow some personal debt consolidation loans through which you can start repaying your hungry creditors and lenders. The loan should be of the same amount as you owe your creditors and once you get the loan, start using the proceeds to repay your creditors. Once they’re satiated, you can start off with paying the new loan in single and affordable monthly payments. This might initially hurt your credit score but in the long run, you can help boost your score.
  3. Debt consolidation program:

    If you don’t want to take responsibilities of the entire debt repayment procedure, you may sign up with a company that offers a consolidation program. The consultant will negotiate with your creditors and reduce the interest rates in order to make repayment easier for you. You just have to repay the entire amount in single monthly payments spread over a long period of time.
Hence, if you’re wondering about the best way to consolidate debt, consider any of the above mentioned option depending on your current financial situation. Know more about debt consolidation tips here.

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Jimmy Simond is founder of he share his immense knowledge of finance in this blog. You can follow him on Google+.


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