Finding the appropriate debt solution can be a challenge. If you’re one of those people who is stuck with a mountain of debt, no doubt, all you want is to be debt free once again. But how? Is there really an easy and more convenient solution to debt? How can you get over your debt problems effectively? Let’s discuss possible ways to solve your debt problem.
What about Debt Consolidation Loans?
One of the most common debt solution preferred by many is debt consolidation. By getting a debt consolidation loan, one can easily pay off all of their existing debts at once. Afterwards, the only creditor you’ll need to pay is your debt consolidation company. With this set-up, you won’t have to deal with multiple creditors and debt collection agencies. There is also no need to juggle your payments from one payment due date to the next. Add to this, acquiring a debt consolidation loan means paying only a single debt with a single interest rate. By eliminating multiple interest rates from your various creditors, you’re able to save a significant amount of money from your total debts.
Clearly, a debt consolidation loan does have its advantages. Nevertheless, it’s important to remember that debt consolidation loans will only work if you’ll be able to keep up with your payments to your consolidation company. It’s also crucial to watch your spending and avoid acquiring new debts while you’re still paying off your debt consolidation loan. Otherwise, you may find yourself stuck in an even far worse debt problem than before.
Consolidating Your Credit Card Debts with a 0% Balance Transfer Card
Another option to consider is to consolidate your credit card debt through a 0% balance transfer card. Some credit cards are accompanied with high interest rates and if you carry over your balances from month to month, you could get buried in debt in no time. Today, credit card companies offer zero interest rate balance transfer cards that many consumers use to transfer high interest credit cards to.
Although these credit cards offer the zero interest rate for just a limited time period (usually from 3 months, 6 months, 12 months or more), a card holder can take advantage of the introductory period to pay off all his credit card balances without the additional interest charge.
Being Permanently Debt Free Through Credit Counseling
Financial mismanagement often leads to bad debt. If you’re currently struggling with debt, don’t be afraid to seek professional help. A credit counseling agency can help you set a debt repayment plan that will specifically work for you. Through credit counseling, you can seek financial advice and work out a budget plan that will help you avoid getting into debt problems in the future.
Find a government accredited credit counseling agency or a non-profit credit counseling organization with a good track record . Bear in mind that a genuine credit counseling agency should not require your payment for its services until an appropriate solution has been planned or until your debt problems has been resolved.