Life can take unexpected turns that can make your financial situation less than ideal. One of the results of this could be significant credit card debt that can seem impossible to dig out of. Many credit repair experts suggest debt consolidation to help slowly but surely reduce your debt. You will still need to make monthly payments, but the amount of time you spend making payments can decrease. Here are four debt consolidation options to consider.
Take Out A Personal Loan
Taking out a personal loan from a bank or a credit union is a viable option depending on your situation. You can consolidate your debt and make monthly payments on a single loan instead of multiple loans. If you have a good credit score, then your interest rate on your personal loan could be lower than some of the others you have opened.
Consider A Home Equity Loan
Credit repair experts also recommend evaluating your home for a potential home equity loan. If your home’s value is worth more than you owe on it, then a home equity loan could be a great option. Most of the time the interest rate is a bit higher than your mortgage interest rate since your home will serve as collateral. The risk with a home equity loan is if you don’t make payments, you could be subject to foreclosure.
Transfer Credit Card Balances
Transferring credit card balances can give you a little breathing room as you pay off debts. You can move the balances from your existing credit cards to a new card by paying a small fee. The benefit is many credit cards offer introductory rates of 0% interest for 12-18 months. So during this time, you won’t pay any interest as you continue making payments, which can save a substantial amount of money.
Put Together A Debt Management Plan
Working with credit repair experts and other financial professionals to put together a debt management plan can be a great strategy. You can slowly pay off your debts the right way and continue on the path to more financial flexibility. When you stick with the debt management plan, your debts will be more manageable than they have ever been.
Core Credit Solutions can help fix your credit in Los Angeles. We have more than 25 years of experience helping people improve their credit scores and have more financial freedom. If you have any questions about your credit score or debt consolidation options, contact us to schedule a consultation.