Saturday, December 29, 2012

Can You Consolidate Debt Without a Loan? Of Course!

Debt has been around for ages and we have constantly come up with different strategies to get out of it such as when we consolidate debt. Usually having more than one debt, one of the approaches to getting out of it is consolidating all of them by getting one loan to pay off everything. But to some people, this basically is just transferring your debt from one hand to the other.

Debt consolidation does not limit itself to this strategy only. There are other ways to consolidate debt without taking out a loan.

The first approach is balance transfers. Most of our debts are tied to our credit cards and we normally have more than just one card with payables in all of them. Balance transfer is as simple as it is called, you can exercise the option to transfer your payables from several credit cards to just one. In a way, you are consolidating your debts into one card. Just take advantage of promos such as 0% balance transfer for and make sure to transfer to that one card with the lowest interest rate.

Another way to consolidate debt is to hire the services of a debt consolidation company to make the payments on your behalf. Consider this if you are still able to make the minimum required payments on your payables but want to get rid of the need to cut cheques every month to different creditors. Referred to as debt management, what the debt consolidation company will do is collect the total amount of your monthly payables and ensure payments to each creditor monthly. You just have to make one payment over to the company that will consolidate debt payments for you.

One more option is what the industry refers to debt settlement. Consider this if you are unable to meet the minimum monthly payment on your financial obligations. Your credit counselor can help you broker a deal with your creditors to request for a decrease in your payment. Once your counselor proves you have insufficient income to meet their payment and agrees to this agreement, your credit counselor will ensure that you are able to make the new and lower monthly payment.

These are your alternatives to consolidate debt. You just have to chose the most suitable one that you can work with while considering your financial capability.

Debt consolidation offers various programs that are all effective. However, you need to analyze which one is best depending on your financial capabilities. Go to this link for more info:

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