When you have excessive outstanding balances, wriggling out of debt may not be the easiest thing to do. However, a useful strategy is to consolidate your debt into one loan, with lower interest. You have to be creative as it may be difficult to get a loan especially when your credit history has taken a hit due to excessive debt.
However, there are still plenty of options. Instead of going for traditional consolidation loans, it will be a good idea to use credit cards, loans from relatives, loan drawn on a retirement policy, insurance policy or on home equity for the consolidation.While some of these options could prove helpful, they could prove tricky too.
The trick is to consolidate in such a manner so that you can repay the entire loan amount in 4 to 5 years and to resist the temptation or bad habit of adding to your debt. For example, a $5000 loan at 11% will need a payment of $164 for you to go debt free in 3 years. The amount of money you pay depends on the time period and some consolidation loans can offer lower repayment amounts. Talking to a credit counselling agency also helps.
All information presented on this website is subject to change. We do our best to maintain it accurate and up to date. However, we recommend all our visitors to read the credit cards′ terms and conditions on the application page before submitting the application form. Note that this website may be compensated if visitors choose to utilize the links on this website.
CreditCardMenu.com is an independent, advertising-supported website. CreditCardMenu.com receives compensation from the credit companies whose offers appear on our website. Compensation may have an impact on how and where credit products appear on the website, including, for example, the order in which they may appear within reviews. CreditCardMenu.com does not present, nor does it review all available credit offers.
* The CreditCardMenu.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. CreditCardMenu.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the CreditCardMenu.com website are property of their respective owners.
Disclosure: Not an access card.