In the current economic scenario
many people are running up increasing number of debts, particularly on their
credit cards. Many more than ever before have found themselves in a position
where their debts are simply not manageable by merely paying back their monthly
credit card bills.
Remember there is no debt so large that doesn’t have a solution and worst case scenarios such as insolvency agreements can be avoided by taking steps like the ones above. Finally, the first step to becoming debt free is to find a solution and stick to it.
If you have multiple credit
cards it is worth moving as much debt as possible onto the card you own with
the lowest interest rate, this way you will be paying back less every month.
Should this not be an option it may be possible to apply for another credit card,
with a lower interest rate and a big enough credit limit to cover your debt,
and transfer all your current debt onto this card. If you proceed with this
option, look for a card that offers 0% balance transfer to avoid any extra
charges. Lastly, look out for any cash back offers. In case you are applying
for another credit card, these can help even further when it comes to paying
off your debts.
Transferring credit card debt
to other credit cards is an option, only if you have a good credit rating. While
getting another credit card will not negatively affect your credit ratings,
unless you default on it, however, the chances of getting one will depend
entirely on your previous credit history. And more often than not, in cases of
large debt, credit history will not be great.
Debt consolidation loans are
another option available for those looking to lump all debts together into one
lower monthly repayment. There are number of firms offering these services
but I would recommend looking for a reputable company that provide a number of
financial services, these companies usually have the lowest interest rates and
the most flexible repayment methods.
Consolidation loans have far
lower interest rates than credit cards and are usually more helpful when it
comes to clearing large debts. Also, unlike a bank or a credit card company,
providers of debt consolidation loans are less likely to reject your
application based on any factors other than your ability to pay the loan back
or secure it against collateral.
Collateral, in case of secured loans,
usually means property owned by the loan applicant – this is why they are often
referred to as homeowner loans. Be aware that defaulting from this type of loan
will almost inevitably result in the loss of your home. Therefore, be sure you are
capable of making repayments.
Remember there is no debt so large that doesn’t have a solution and worst case scenarios such as insolvency agreements can be avoided by taking steps like the ones above. Finally, the first step to becoming debt free is to find a solution and stick to it.
Author: Kevin Ball
He writes on financial topics.
3 comments:
Very good tips, so many people forget the basic money management skills that are needed to save money.
Great information for the readers. Thanks.
It is definitely useful information for the reader. We all know that most of people use time to time cash lending services. Payday loans are becoming more popular among those who sometimes face the lack of money. It is a convenient and easy way to get money as fast as it is needed (about how to get money fast link http://www.cashloansonlinefast.com). People apply for loans and pay them off without difficulties. But there are some who cannot pay off their debts for one or another reason and, as a result, become problems with money lenders. How to avoid such problems and how to pay off the credit card it is written in this useful article. I’ve read it with great interest. Thanks the author.
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