Times are tough right now. Many people have found themselves trapped beneath a large amount of debt. And while for some people this debt accrued due to spending habits, for many others it’s a reflection of job loss and maybe an unexpected medical emergency. However, regardless of how the debt is there, with due diligence it is possible to take hold of the situation.
For those who are looking for a way to organize all of their credit card debt into one monthly payment, debt consolidation may be the way to go. With this debt relief option all of a person’s credit card debt is transferred to one card. Then, instead of making numerous payments every month to different credit companies, just one monthly credit card payment is due each month.
However, to ensure that debt consolidation works in favor of the consumer, it’s important to truly understand how that one card will work. For example, many companies will promise a quick easy solution, however the interest rate may be outstandingly high, or even start off low, but then quickly increase. Before consolidating it’s important to make sure that the interest rate will remain low.
And, aside from debt consolidation – which may not be the best choice for everyone – there are numerous other debt relief solutions that are available. For example, if your mortgage was lower would you have more money for bills? Maybe a mortgage modification would work best for you. Or, is the debt just unmanageable? Maybe filing for bankruptcy would actually be the best financial solution.
In the end, regardless of what kind of debt relief option a person chooses, the important aspect to remember is that help is available and it’s best to take control and start asking questions instead of just letting the debt pile up.
Source: Fox Business, “Time to Put an End to the Financial Blame Game,” Howard Dvorkin, Aug. 1, 2011