A consumer in financial troubles isn't so rare these days, but the methods they take in achieving financial freedom is not always the best choice. In fact, debt consolidation shouldn't be a light decision that it has come to be among so many consumers. While a debt consolidation can indeed help, it can also do a world of hurt.
Sometimes getting a better rate is as easy as calling the credit company up and being polite about the situation. Some customer service representatives are even authorized to help consumers with their interest rates, depending on the situation and the credit company in question. Getting a better rate this route is rather simple- but often never done by many consumers who never think such an easy tactic will end in success.
Another alternative to submitting to debt consolidation is the home equity loan. It's never a good idea to take out more loans to help pay off previous loans, unless responsibility is present and can be observed. In the case of the home equity loan, a new loan is to be taken out on the equity of one's household to repay debts. Be sure to note, however, that repayment plans will commonly stretch a couple decades in length.
Repaying previous debts can also be accomplished via refinancing any property that one has, in which the refinancing sum is greater than what is actually owed. This will give consumers some "fast cash," but the repayment plans can often stretch many decades as well. In fact, repayment plans may take 3-4 decades to repay. It's a tough prospect to swallow for most, and thus, few go this route.
Just like one can refinance their house, one can also refinance a car or vehicle in order to get some extra cash to pay off debts. But in the same case as refinancing a house, it can be a burden to have to pay extra long sums of money over the course of extended periods. A secured loan used to get a car can be borrowed against in this situation- but always make sure that one can have the car breakdown and still have a viable way to get to work or pay off debts.
Lastly, vanquishing all debts is possible through bankruptcy. Bankruptcy is always the last option that one can ever resort to, as it will damage one's credit report a decade in most cases. It is also a very frustrating time in which many stressors will put those who go through bankruptcy in a living nightmare.
Final Thoughts
Debt consolidation isn't necessarily a bad thing, but it is best if consumers can find alternatives before resorting to debt consolidation. This should be a careful process, however, as sometimes taking out more loans is a bad idea that can put consumers in a worse situation that if they would have opted for debt consolidation. Speak to a financial officer to learn more about the possibilities of one's situation.
Sometimes getting a better rate is as easy as calling the credit company up and being polite about the situation. Some customer service representatives are even authorized to help consumers with their interest rates, depending on the situation and the credit company in question. Getting a better rate this route is rather simple- but often never done by many consumers who never think such an easy tactic will end in success.
Another alternative to submitting to debt consolidation is the home equity loan. It's never a good idea to take out more loans to help pay off previous loans, unless responsibility is present and can be observed. In the case of the home equity loan, a new loan is to be taken out on the equity of one's household to repay debts. Be sure to note, however, that repayment plans will commonly stretch a couple decades in length.
Repaying previous debts can also be accomplished via refinancing any property that one has, in which the refinancing sum is greater than what is actually owed. This will give consumers some "fast cash," but the repayment plans can often stretch many decades as well. In fact, repayment plans may take 3-4 decades to repay. It's a tough prospect to swallow for most, and thus, few go this route.
Just like one can refinance their house, one can also refinance a car or vehicle in order to get some extra cash to pay off debts. But in the same case as refinancing a house, it can be a burden to have to pay extra long sums of money over the course of extended periods. A secured loan used to get a car can be borrowed against in this situation- but always make sure that one can have the car breakdown and still have a viable way to get to work or pay off debts.
Lastly, vanquishing all debts is possible through bankruptcy. Bankruptcy is always the last option that one can ever resort to, as it will damage one's credit report a decade in most cases. It is also a very frustrating time in which many stressors will put those who go through bankruptcy in a living nightmare.
Final Thoughts
Debt consolidation isn't necessarily a bad thing, but it is best if consumers can find alternatives before resorting to debt consolidation. This should be a careful process, however, as sometimes taking out more loans is a bad idea that can put consumers in a worse situation that if they would have opted for debt consolidation. Speak to a financial officer to learn more about the possibilities of one's situation.
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