| Best ways to consolidate debt (debt consolidation)
|
| ACS provides free articles on credit counseling, debt consolidation loans and refinance mortgage. |
Best ways to consolidate debt
[ Bookmark this page! ] [ get HTML Version ]
Debt reduction guide
Many people may say that the process of debt reduction is common sense and obviously, the best way to handle your finances is to pay with cash. Just because you have incurred debt, doesn't necessarily imply that you've mismanaged your entire financial life. Once you suspect that your debt is starting to get out of control, you may want to consider a quick diet for debt reduction.... Read debt consolidation article
How to Successfuly Eliminate Business Debt
Any debt consolidation plan will not work unless the debtor sticks to it and does not deviate. This should be obvious, but with the curve balls often tossed your way, it may prove to be more challenging than one would think. There are some steps you can use, though, to help you stick with it. If you are facing business debt, these steps can be applied as well as debt is debt whether a consumer or ... Read debt consolidation article
Best ways to consolidate debt
If you are in debt, you have several options available to you in your quest to consolidate your balances and thereby reducing your monthly payments or paying off your loan faster. Let's look at 7 of the most popular and effective ways for you to consolidate your debt.
1. Life Insurance. Yes, many life insurance policies have a cash pay out [loan] provision. If you have held the policy for quite some time, the amount of equity built up in it can be quite large. What if you can't pay the insurer back? Good question! In many cases the amount you owe will be deducted from what your beneficiaries would receive upon your death.
2. Your Retirement Plan. If you have a 401(k) plan at work, you can usually borrow from the account and use these funds to pay off debt. Caution: if you do not pay back the loan within a certain specified time or you leave your job, you could be faced with penalties and tax charges from the Internal Revenue Service.
3. Credit Card Transfers. Chances are some of your outstanding loans are for double digit rates. Shop around and see if a credit card company will allow for you to transfer your outstanding balance over to them and at a significantly lower interest rate. Make sure that the cash transfer fees are low [better yet, see if you can have this fee waived] and that your interest rate remains fixed.
4. Home Equity Loans/Lines of Credit. If you own your own home, it is likely that you have built up equity in your home especially if you have lived there for several years and you live in an area of rapidly appreciating home values. If this is the case, lenders will be glad to offer to you a loan or line of credit based on your home's value. You can use the loan/line of credit to pay off debt; in many cases the interest rate for the loan/line of credit is tax deductible too, whereas for a credit card debt it is not.
5. Renegotiate Your Loan. Some lenders will be all too happy to lower your outstanding interest rate, especially if in doing so they get to keep you as a customer. Sure, your 19.8% rate may only drop to 14 or 15%, but that may be all you need to get a handle on your debt.
6. Your Savings Institution. Banks, savings and loan associations, and credit unions may be able to help you consolidate debt by offering to you one loan that will pay off all your debt and allow for you to have a low, fixed-rate payment instead. Shop around, the rates vary!
7. Go to Mama! Family loans are a popular way to get rid of debt. Still, if you can't pay them back, what effect will that "non-payment" have on your relationship with your family member? Sure, it may not effect your credit standing, but it certainly could have a negative effect on your family standing!
Naturally, you will want to explore each of these options and see which ones are the most feasible for you. Read the fine print and make sure you understand the terms of any debt consolidation loans. You want to reduce your debt, not create an avenue for further trouble.
Matt Keegan is The Article Writer who writes on subjects from Aviation to Zoos. Please contact Matt for your next article needs at http://www.thearticlewriter.com
Bookmark this page | Search this site | E-mail to a Friend
Debt negotiation - How to negotiate your debt
Eliminating your debt is a daunting task. What can you do to get out of debt fast? Believe it or not, negotiation along with proper financial responsibility is your foothold out of the rat race. Learning how to eliminate your debt might be one of the most important life skills that you learn because it can bring you happiness and fulfillment. In order to successfully eliminate your debt, you must use a combination of self-control, proper negotiating skills, and some future planning.
Here Are Some Tips
1. Chop 'em up or freeze 'em. Start by taking all your credit cards out of your wallet/purse and cut them up into pieces. If you're one of those people who make the claim that you might need those credit cards in case of emergency, then a unique strategy is to freeze your cards--literally. Put the credit card into a paper cup and fill the cup with water and then freeze it. You won't have immediate access to the credit card and it will still work for you in case of emergencies. Whatever way you choose to get rid of your credit cards, make it a symbolic ritual of your commitment to get out of debt.
2. Start living within your means. You'll be amazed at how much money can slip through your fingers on small daily purchases. Start living within your means by paying cash for the things that you need to purchase. Start looking for the cheaper items. Remember, brand names do not always equate to being a better product. Big businesses count on the fact that you are going to toss them your money without question, so don't make it so easy for them. Use coupons wherever you go. Buy in bulk to reduce costs. Learn how to cook. The ways to save money are endless. Just remember that living within your means does not mean you have to live poor it just means you have to live smarter.
3. Consolidate all your high-rate credit cards. First check out the maximum credit limit and APR on all your credit cards and choose the one with the lowest APR and consolidate your other credit card balances onto that one account. Make sure that there are no hidden fees associated with the balance transfer. Another way is to negotiate a loan that offers a lower APR than what you are currently paying for and pay off your high interest cards with that loan. Just be very careful about the small print because many credit card and loan companies will offer a low introductory APR, but once that is over, they jack it up through the ceiling.
4. Invest in your debt. Many people who are stuck in debt still pay quite a bit into their mutual funds or stock portfolio thinking that they will get a higher rate of return. In most cases, this will never happen. Annual APR's for credit cards are a whopping 24% or more. I have yet to see a constantly performing stock or mutual fund that turns out even 15% on a regular basis. Treat your debt like a high-interest investment one where you are guaranteed to earn a huge rate of return. Always invest in your debt before you put money into investments.
5. Use a trusted family member. One of the best ways to get out of debt is with the help of a financially stable family member because they will usually give you the cheapest deal on a loan. Get an IOU agreement in writing and pay them a predetermined amount every month. Some people choose not to go this route because of pride, but it could be the fastest and cheapest way out of debt. Just make sure you possess the integrity and honor to repay your debt to them otherwise you will have more problems than just financial ones.
6. Don't get suckered into taking more debt. A dirty negotiation tactic that loan companies like to use is to offer you more of a loan than you need to pay off your debt, thus adding more debt onto your existing debt. This tactic works the same way as when a child brings a stray puppy home and asks, "Can we keep him?" The credit companies know that there is a great deal of emotional attachment to that extra credit and they are betting that you are going to take that "stray puppy" home with you. Resist the temptation to take that extra credit home with you because it will cause more problems than it is worth.
7. Kill the smaller vermin first. If you have several debt accounts in various denominations, then attack the smallest debt first with full force and kill it as quick and as painlessly as possible. Once that debt is gone, then use the newly freed savings from the last debt and apply it towards killing the next largest one, and so forth. This is a simpler and much more effective way of eliminating debt than paying small amounts off of each loan. It also has the psychological benefit of boosting your motivation with each progressive success.
8. Stay busy. It's a known fact that if you have too much free time on your hands, you are more likely to spend money than if you were busy. Take up some recreational activity to keep you occupied so that you don't have that free time to go spend your money.
9. Set up an auto-pay system. There is a ridiculous amount of money to be made on late charges and finance charges. Credit card accounts spiral out of control because people see that they do not have any monthly minimums dues and let it roll over to the next month. The credit card companies love this because you have just given them extra money in the form of finance charges to your account. Always pay more than your minimum to get out of debt. Avoid handing free money over to companies who charge you for late fees by setting up an EFT or automatic bill pay system so that you won't have to deal with writing the checks, finding stamps, and mailing the bills every month. Having an automated system do this for you will make sure those bills get paid on time.
About The Author
Tristan Loo is an experienced negotiator and an expert in conflict resolution. He uses his law enforcement experience to train others in the prinicples of defusing conflict and reaching agreements. Visit his website at http://www.streetnegotiation.com or e-mail him directly at tristan@streetnegotiation.com
Top rated articles for debt consolidation
1. Online debt consolidation - Resources on the internet
Consumers today are getting wiser by the day. They are educated and enlightened. They know what they want. A change in their needs and demands has led to a complete reworking of the market today. This... Read debt consolidation article
2. Bad Credit Home Loan To Get You Out Of Debt
A "bad credit home loan" can help you climb your way out of debt and get you started back on the road to upstanding, good credit. There are many lenders who are willing to make bad credit home loans t... Read article
3. Debt Consolidation Tips
"Never in the field of Human Endeavour has so much been owed by so many" - apologies to the late Sir Winston Churchill.
OK folks it's another bout of Heads Up time again! I have just fini... Read debt consolidation article
4. Find the best debt consolidation solutions
Taking loans has become a way of life because of the convenience it offers. Within manageable limits loan repayment does not create any problems. However there is no harm in looking for better options... Read debt consolidation article
5. Debt consolidation loans FAQ - Frequently asked questions
Debt consolidation loans can be the answer to a number of financial problems, but before you take the plunge, make sure you're well informed. What is a debt consolidation loan? D... Read debt consolidation article
6. Credit Card Debt Counseling to Help Reduce Debt
Credit card debt can mount up quickly and can soon become overwhelming. And in addition to the debt itself, if you get behind the late fees and over limit fees can make this situation much worse.
... Read debt consolidation article
7. Home Mortgage: Bad Credit Won't Rule Out a New Home
When you're looking for a way to afford your dream home, home mortgage bad credit options can offer a way to get you into the home that you want to buy. Not long ago, people with less than perfect cre... Read article
8. Debt management - What you mama never told you
How do you know that you are in DEBT? How do you know that you are really in deep DEBT? Do you think you need DEBT MANAGEMENT or DEBT CONSOLIDATION? This are the questions that most professionals will... Read debt consolidation article
9. Erase Bad Credit With A Little Help
Everyone has a little trouble now and then. If your little trouble ended up recorded in your credit history, it may take a little effort to erase bad credit and get a clean start, but it's an effort w... Read article
10. Student Debt Consolidation Loan Guide
Loans, which are given to students in order to help out in the imbursement of the expenses of professional schooling, are known as Student loans. The administration of the nation provides these loans ... Read debt consolidation article
Credit Counseling and Debt consolidation services in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi,
Best ways to consolidate debt
Debt consolidation services in Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania,
Debt consolidation services in Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Washington DC, West Virginia, Wisconsin and Wyoming.
Add website or submit URL link of your site to 1000 free directory