Debt is an ever-present and constant issue for a large number of American citizens, but this doesn’t need to be the case. Many people are perfectly capable of helping themselves and ameliorating their situation, but simply lack the necessary knowledge to do so. There are a number of fairly simple techniques that can be used to engage in successful debt consolidation, and a few are listed below.
Successful Debt Consolidation and your Credit Report
Become knowledgeable of your credit report and stay in touch!
To know where you need to go, you must first know the point at which you’re starting from. This can be done by becoming familiar with your credit report and making sure you stay on time with payments. Another important consideration is to make sure you stay in touch with your consolidation bureau. Though you should only be paying a fraction of what you initially owed, they will often work with you to reschedule payment dates in the event you can’t make them. This helps build trust and reputation with them, and they’ll know you’re doing everything in your power to work with them.
Effective and Ineffective Techniques for Successful Debt Consolidation
It is NOT advised to use HELOC as a means to debt consolidation.
Don’t consider the idea that it may benefit you to use your home as collateral in this situation. In the event you are incapable of repaying the loan against your debt, you are then at a strong risk of losing your house. Many banks and lenders offer secured loans, and if you don’t meet the qualifications, an unsecured loan is still a much better option that using a HELOC. It is also possible and preferred to use a less essential luxury item such as a car or boat as collateral, and most lenders won’t oppose this option as long as you don’t owe money on those items as well. It is all in taking advantage of the possibilities that are provided to you.
Non-profit isn’t necessarily your best option
It is best to consult reputable credit services and check their recommendations for help. Some not for profit companies are shady, unreliable, and will try to take advantage of you while you’re down and out, so it is almost always beneficial to check the reliability and credibility of the company you choose to use. Reputable companies also benefit you by allowing settlement offers that are often times less than half of the amount you actually owe, and you can add creditors to your program in the event you stumble upon unforeseen bills or circumstances in which you are unable to pay. This is an entirely doable process, but it cannot be emphasized enough that patience, communication, and responsibility are key to successful debt consolidation.
Still at a Loss?
Other possible options
If you happen to have a good life insurance policy which you’ve paid a reasonable amount into, your company may advise you to take out a loan against your policy for quick cash that can be returned and repaid later. It is also beneficial to look into credit cards that offer 0% interest in the short term. Many companies offer balance transfer options for a nominal fee that is typically much less than your current credit card interest, and this will allow you six to twelve months to pay strictly towards your balance and not the wallet of the credit company.
The importance of accountability and involvement in the process
Aside from the actual strategies you can use to mitigate your circumstances, it is perhaps most essential to take a proactive approach to reclaiming your credit and your life. These companies are here to help you and understand the struggles of your situation. It is imperative that you keep in touch with them, make payments as scheduled, and let them know you fully intend to follow through with your half of the deal. Creditors will likely continue calling you despite the offers sent by your consolidation company, and this may continue for up to three months until they assure you’re keeping up with payments. DON’T IGNORE YOUR CREDITORS. Let them know you’re continuing to make payments with your consolidation company and they will be receiving the money that is due to them.
The process of successful debt consolidation is well within your reach! Through following these tactics you can be on your way to living a debt free life in a matter of no time. Thousands of people are currently in this situation, and thousands have successfully amended it. It is simply through knowledge and understanding that you will benefit the most in your endeavors. It is not an entirely difficult process if you have an idea of what you’re doing, and you’re only benefiting yourself by becoming well informed of the various procedures regarding this process.