Personal Finance Defense Group

Getting out of your debt crisis

Debt Consolidation

how to be debt free

Individuals with a lot of debt are always looking for ways to make their credit better. Paying off old debt with new debt may be the answer such asĀ loan for bad credit. Most families or individuals have at least one credit card in their possession. We get these cards thinking we will only use them in an emergency. This is never the case. After we figure out we have a few bucks on a card, sitting in our wallet, it gets easier to buy that sweater or go out on the weekend. Before we know it, our emergency card is to the max. Now it’s got to be paid back. We need to look at a few options. One is debt consolidation loans. The other is personal loans.

Debt consolidation loans are set up to help people lower their debt to cash ratio. It is supposed to be a way for people to get out of debt faster. Debt consolidation can help get the creditors off your back. One type of debt consolidation option is to put all of your debt on one loan or credit card. If you go online you can look over the options for credit cards and the interest for transfers. Find one that has little interest for transferring from another high-interest card. If you transfer, you will have less interest and a few more options. Be sure to put up the smallest of the cards, you pay off, to have in case of an emergency. Lock it away. Do not use it again unless you have a real emergency.

negotiation about debtAnother type of debt consolidation option is to find yourself a small personal loan with low interest. A personal loan is usually available with just a signature if you have decent credit. Take the cash from the personal loan and pay off the smaller credit cards. Destroy all the cards except the one smallest. Keep it for emergencies. File it away so it is not in your wallet. You can apply for personal loans through a bank or online through a lending agency. You must have decent credit to apply and qualify for a personal loan through a bank. They are much stricter than some lending agencies. A lending agency may set up a loan that is a payday loan. With a payday loan, you bring in a check stub as proof of your pay amount, a blank check to pay back the loan, and identification. The payday loan is set up to draft the repayment on a specific date that you and the lender agree on. Usually in 2 weeks or fewer. This type of loan is not the type you utilize to pay off a lot of debt. It is not a debt consolidation, just a loan for emergencies.

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