Living with debt has become an American way of life, but unfortunately, it comes with an enormous price tag. People who owe more than they can pay back are stressed out, less healthy and their quality of life spirals downward with the heavy burden of debt.
The following six ideas can help you consolidate debt and otherwise find ways to gain your financial freedom back, with many other benefits to follow:
1. Set Time-Sensitive Goals
You may be facing what seems to be an insurmountable level of debt, but if you consistently chip away at it, it’s going to go down eventually. Set realistic figures you can reach and give them a date, too, so that you have workable goals that are within reach.
2. Apply For A Personal Loan
If your credit is in good enough shape, you could qualify for a personal loan which you can then use to consolidate debt. A personal loan might not have the lowest interest rate available, but the terms are usually flexible and the amount of money you can apply for can go a long way toward consolidating date into a more manageable amount.
3. Transfer Your Debt To A Low-Interest Credit Card
Many people simply own too many credit cards and they reach for whichever one is most accessible in their wallet. That’s no way to keep tabs on debt, especially if your cards have very different interest rates. Look into a low-interest card where you can place all or most of your debt and begin to pay it down at a much lower rate than what you’re likely doing now. Even an interest rate just a few percentage points lower can equate to significant savings over the long-term.
4. Obtain A Debt Consolidation Loan
Your bank or other lending institution may be able to sit down with you and work out a highly specific debt consolidation loan on terms you can work with. If your credit is somewhat dependable and your debt-to-earnings ratio acceptable, a debt consolidation loan might be your best option. Putting all of your debt in one place and repaying it in a responsible manner could save you a lot of time and money, whereas owing many parties at varying rates of interest and trying to pay them all simultaneously can be costly and confusing.
5. Seek Credit Counseling
Particularly if you are late in repaying any of your debt, credit counseling could help you in a couple of ways. Primarily, they can assist you in formulating a workable home budget and savings plan, but they also might be able to avail you to debt consolidation loans at very favorable terms, if you qualify. Following some type of financial counseling and education, many organizations will work closely with you in bringing down debt and creating a more viable way of handling money in the future.
6. Ask For Help From Someone In Your Family
As a last resort if you’ve run out of official channels in trying to consolidate your debt, consider asking someone you know or a close family member to assist you. Provided you can meet whatever obligations you mutually agree to, this type of deal can quickly put you back on the right track, without having to meet a lot of stringent requirements or credit rating criteria. If you have the means to repay a loan from someone you know, their terms are likely to be far less expensive than a bank or debt consolidation agency.
Once you have the debt in your life under control, numerous benefits will naturally follow. You’ll be less burdened by stress, find yourself much happier and have many more doors open in life.
Although it’s not easy to tackle debt consolidation and get yourself back on track, the rewards are well worth the effort and sacrifice. Once you’ve attained that financial balance again, be sure you do what it takes to stay out of the red and free from the suffocating burden of debt again.