Many people struggle with credit card debt, and need debt relief. Some debt support groups can provide budget plans to reduce spending and use savings to help you catch up with your debts. Some of these budget plans from debt support groups may be strict cash-only spending plans.
Although these debt counseling tips are effective, controlling budget and spending may not be enough to alleviate the debt problems of some people. If this applies to you, drastic forms of debt relief to lower interest rates in their credit card debt apply.
Debt consolidation allows you to combine all your credit card debt into one single loan. The result is usually a lower overall monthly payment and lower interest rates.
Although you don’t have to be a homeowner to get approved for debt consolidation, using the equity of your home has advantages, such as significantly reducing interest rates. Home equity loans also come with tax deductions, making it easier to save money. And if you can save enough from the benefits, you may be even able to make extra payments.
Important reminders
Some debt consolidation services use a calculation that will cause you to pay a higher monthly payment than your unconsolidated credit card debts. In such a case, shop around for other debt consolidation options.
In addition, if you are using a home equity loan, be sure to use the savings for your debts. If you continue to miss on your payments, you can lose your home, which is an even bigger problem.
