With inflation being a keyword these days, everyone is trying to save money one way or another. If you have multiple credit cards or loans with balances and different due dates, it can make life chaotic. Consolidating debt could be the answer to saving you time and money.
Often, people will turn to a Home Equity Line of Credit or HELOC to consolidate debt, however, there are other ways to consolidate debt. Rather than taking out a second mortgage, you can consider these options:
Balance Transfer Specials on Credit Cards
One way to consolidate is to transfer credit cards with a high-interest rate to one that is lower. Some balance transfer specials offer a lower introductory rate and then raise it after a certain period. However, this may give you enough time to pay down your debt. It never hurts to contact your credit union or bank and ask for a balance transfer – and keep a look out for promotional offers.
People forget that you can consolidate debt using a personal loan. This loan process is often quick and easy. You can apply for a personal loan from a credit union or other financial institutions. The interest rate may be a little higher but lower than what you may be paying on your current loans. Another perk is that you won't have to put your home up as collateral to secure the loan.
Money Management Help
Another option is to seek money management assistance or credit counseling. You can work with a non-profit agency that charges little to no fees, and your credit score won't be negatively affected. Counseling services can negotiate lower balances and interest rates with your creditors on your behalf.
Category: Credit Cards & Loans