Being in debt is a major struggle, but one you don’t have to face alone or without help. Sometimes having debt can be overwhelming and you can feel as though you will never be able to get out of debt, at least not any time soon. However, there are ways to improve your situation. Considering debt consolidation or debt management can help you straighten out your finances, or at least you will be headed in the right direction. Below are three ways consolidation debt management can help with your debt.
Debt Consolidation Loans
One way to help with your outstanding debt is with debt consolidation loans. These loans allow you to consolidate all of your existing debt into one new loan. This process can allow for one payment instead of several and will hopefully allow for a lower payment. It may at least reduce the stress of paying several payments each month and having to keep up with different payment dates. While debt consolidation loans are perhaps the most popular way to help out with debt, they can also be difficult to obtain if you have a low credit score due to outstanding debt. You might not always be able to get a low interest rate or monthly payment, but with enough research and time and effort, you may be able to find a debt consolidation company that can provide a loan that fits your needs better than your current arrangement.
Debt Management Plans
Another way to help with your debt is to obtain a debt management plan. A debt management plan is offered through credit counseling agencies. These plans allow you to make one consolidated payment to the credit counseling agency, which will in turn make payments to all of your different creditors. Credit counseling agencies also work with creditors to waive former late fees and even lower interest rates. While your debt is not reduced, these other services help lower your monthly payments and set up a clear plan to help you pay your bills on time every month. Credit counselors are also more than willing to provide further advice and counsel to help you through the process.
Transferring debt to credit cards
While this technique works best when you have a smaller amount of debt, and often only credit card debt, it is a last resort way to help with your debt issues. If you find that you are struggling under too many credit card payments and are not paying down the principal balance, consider transferring existing credit card debt to another credit card. Choosing a credit card that has a 0% interest rate for a year can allow you to pay off a more significant amount on your principal balances and alleviate some of your debt.
About the Author – Anne Legg is a financial advisor to many and suggests working with Advantage CCS for consolidation debt management services to improve your debt situation.