Best option for consolidating debt
Step 1: Gather information about all your debts To take control of your debt it is essential to know how much debt you have.
Review your statements and work out the following: Step 2: Work out how much you can put towards paying off your debt each month Next, it’s good to know where your money is going and how much you have coming in.
Each debt consolidation option has distinctive pros and cons and not every option is a available to everyone. Below you can learn more about each of these options to get a better feel for which option may be right for you.
We also discuss the types of debt consolidation companies and organizations that offer these various options.
This usually provides you with three advantages: Banks and credit unions usually offer the best interest rates for debt consolidation loans.
Step 3: Explore debt consolidation options Now that you know where you stand - how much debt you owe and how much you can put towards your repayments - it’s time to set up a plan to clear it.Finance companies tend to charge anywhere from 14% for secured loans to over 30% for unsecured loans.If you have a number of debts, you may wish to merge them all into one loan. There may be a number of reasons why you would wish to do this.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.