Debt consolidation may be a good method of lowering your interest rates, but it is easy to get scammed. Here are some tips on how to consolidate and how to get rid of it. Debt Consolidation may work as a way to pay off debt even more faster. However, if you’re not disciplined and seek for help in the wrong places, then you’ll end up spending much time paying off your debt.
Let’s have a look at what is debt consolidation? and where to find a reputable organization to help you and ways you can get out of debt.
What is debt consolidation?
Debt consolidation which combines all of your debt owes into a single payment with a less monthly interest rate. This situation promotes you to take another loan to pay off all of your other debt, which means you’ll be able to pay off your debt faster.
The interest rates depend on which type of loan you attain.
Secured loan : This is a loan where you just uses an asset. As a result of a secured loan, your creditor will repossess the said asset.
Unsecured loan : This is a loan where you just uses a credit. As a result of an unsecured loan, you might end up with high-interest loans
Problems with debt consolidation
It could take longer time to pay down your debt
- You could lose your home or any kind of an asset.
- Your credit score gets affected.
How to consolidate debt and get rid from it
If you are interested to consolidate your debt. Consult Synagy Finance, to achieve financial security and freedom.
Step 1: Find a non-profit debt consolidation organisation Two good signs for a non-profit debt consolidation
A reputable non-profit will have monthly maintenance charges. Luckily, they’re relatively minimum cost and if you’re in really dire straits, some non-profits will waive the fees.
Too many scam companies pretend they’re non-profits to tempt the people. Don’t be the part among those people. Make a list few non-profit debt consolidation firms and spend a week by calling each of them and getting a consultation on your situation and what they can afford for you. A good non-profit will spend about an hour for your consultation. Beware of some organization that wants to take your money and put you into their plan.
Step 2: Eliminate temptation
Luckily, a non-profit debt consolidation firm will take care of your work. Which means they will make a call with your creditors, negotiate down your debt and interest rate. To consolidate your debt into one manageable monthly payment., a non-profit debt consolidation will work with your creditors.
Unluckily, that’s the easy segment. The hard segment is paying down your debt — and that’s up to you.
To do that, Initially you need to get rid from the temptation of using your credit cards until you’re debt-free.
Step 3 : Make a plan that how you’re going to pay down your debt
I recommend three things:
- Make conscious spending plan
- Tapping into your hidden wealth
- Start earning more money
You should focus on minimizing the costs mercilessly on everyday bills. With just a 5-minute phone calls, you can save a bills. Such as car Insurance, cell Phone plan
There is no limit to how much you can earn. So earn more money to get out from the debt quickly. Earning money is the secret weapon for paying down your debt as soon as possible