Debt consolidation is what a solution that many turn to when the bills pile up and then people need when they’re dealing with a lot of different bills. Does this situation sound like your situation? Or it might be useful for someone you know in this situation?
Never go with a debt company just because they claim non-profit status. Non-profit does not mean that it’s great. Check with the BBB to learn if the best companies.
Do you currently hold a life insurance? You may wish to cash it in to pay off your debts. Talk to a life insurance agent to see what you could get from your policy.You can borrow back a part of your policy to pay off your debt.
You can pay off debt by getting another loan. Talk to loan providers to figure out the rates you could expect to pay. Just be sure you’re going to be able to pay the loan back if you’re going to put up your car.
Bankruptcy may be a better choice for some who might otherwise consider debt consolidation. However, when you are already missing payments or unable to continue with payments, you may already be dealing with bad credit. Filing for bankruptcy lets you to start reducing your debt and get on the path to financial recovery.
Find out how a company is calculating your interest rate for the debt consolidation.Fixed interest rates are typically the best. You will know precisely what you are paying for the cost of the loan. Watch for any debt consolidation program with adjustable interest. This can cost you more interest later on.
You might consider drawing money from your retirement fund or 401K to pay your high interest loans. Only resort to this option if you can be repaid. You have to pay tax and penalty if you cannot.