Managing debt can be challenging. Consumers typically have debt spread across few credit cards account and may also include personal loans. The first step in getting a solid handle on debt is to consolidate multiple accounts into a single account. This will give you better visibility into how much do you owe and how long will it take to pay-off the debt.
We have helped thousands of consumers with their debt consolidation needs.
Depending your situation, we recommend following options to reduce your debt:
If you are struggling with keeping up with your credit cards or personal loan payments, then you have two options:
1. Debt Relief or Debt Settlement
Debt settlement is a program where you consolidate all your payments to a single payment with the debt settlement provider and then this provider will negotiate with the creditors to reduce your total debt. You do not have to pay any upfront fees to these companies until they give you a settlement offer and you accept it. You can reduce your debt by 30% to 50% without paying any interest or late fees. We have partnered to reputed companies for credit card or personal loan debt higher than $10,000. If you have a stable monthly income source and you can make one monthly payment towards reducing your reduced debt then click here to find our debt consolidation results.
2. Credit Counseling
If you have financial hardship (such has change to a lower paying job or temporary loss of job) and if you would like to get reduction in the credit card interest rate then a Debt Management Plan (DMP) is a program is a smart option. In this program, a credit counseling company will help you set up a debt management plan and then they will negotiate a lower interest rate and could also get one-time waiver in late fees. Click here to learn more and get a free no-oblgation consultation.
Other Debt Consolidation Options
The options below work great for debt consolidation if you have:
(a) Excellent Credit (credit score 720 or higher)
(b) A stable income
(c) Low credit utilization (your total debt divided by your total available credit limit)
1. A 0% introductory APR balance transfer card
This type of card gives you up to 21 months of time to keep paying down your debt without paying any interest at all! For people with excellent credit, this is the smartest option to pay 0% interest rate for several months. Compare the top rated balance transfer credit cards.
2. Personal Loan for Debt Consolidation
Another very popular option for consumers is to a single personal loan to pay-off all of your other credit cards debt. This works when you have excellent credit and the personal loan interest rate is less than the credit card interest rate. Compare personal loans offers.
3. Home Refinance
If you own a home and if you have good equity in your home, then based on your excellent credit and income, you can potentially do a cash-out refinance and then pay off your existing debt using the cash. Compare refinance loans.
4. Home Equity
If you own a home and have good equity in your home, then taking out a home equity could be a smart move. Typically, a home equity interest rates are substantially lower than the credit cards or personal loan rates. Compare home equity loans.
The last resort for a financial restart
If you have no or low income but too much debt and not a great credit, then it is likely that you may not have any other good options besides considering a bankruptcy. Filing for bankruptcy is a serious decision and we want to make sure you consult a reputable attorney. We have partnered with LegalZoom for this. They even offer a free consultation.