Debt Consolidation

These are the Best Debt Consolidation Strategies That Never Fail

If you are up to your neck in debt, it is completely normal to fantasize a magic wand that will erase all your debts right away; it’s normal, not practical. There’s no such magic wand. But yes, there are certain strategies that you can follow to put you on the path of a debt-free life. The best debt consolidation strategies never fail, but they do take some time. You may have come across something like “Slash Your Interest Rates DOWN TO ZERO”, “Debt Relief Is Just A Click Away!”, “”, and other such screaming promises that you may find incredibly alluring. But, always remember, if something sounds too good to be true, the chances are that it is. So, don’t believe them; follow these risk-free roads to pay off your mounting debts.

Negotiate with Your Lenders

Your creditors will be the worst victims, the saddest people in this world, if you go bankrupt. They do not find pleasure in giving you harassing collection calls. They are interested in just one thing – getting their money back. So, when you show your willingness to repay the loans provided the terms are made little more favorable, your creditors may consider the same. It can be your best debt consolidation move. You have to be very genuine in your approach. Do not contact them with false, manipulated stories. Be very honest while you explain your financial situation to them. If they are convinced, they can make things very easy for you, completely waiving off late fees and penalty charges, significantly reducing the interest rates, and extending the loan term (eventually reducing the monthly payments).

Be Safe, Take an Unsecured Loan

Do not panic if your creditors are stubborn in their attitude and are not willing to make the terms favorable enough for you. You can try taking a personal loan or other unsecured loans. If you do a thorough research, you can easily find some of the best debt consolidation programs that do not require you to put any collateral. Going for these unsecured loans thus can be a safe and secure strategy.

Try Different Refinancing Options

Another way is to try different refinancing options with your home loan or car loan. You may have come across something like “cash-out refinancing”. This option allows you to refinance your mortgage or auto loan for greater than the amount you owe. You can use this cash to pay off some of your high-rate debts. However, it is important to note that the “cash-out refinancing” is an option that should be used just one time and only when things are really horrible because the overall debt actually grows with this strategy. For example, you can use it when a creditor is all set to fire strict legal actions against you; you can throw the money on their face using this option and move ahead to manage your other debts.

When you keep your focus on the that always work, you can easily save yourself from falling into further debt trap.

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Posted in Debt Consolidation, Debt Management | 5 Comments »

5 Responses to “These are the Best Debt Consolidation Strategies That Never Fail”

  1. [...] is true that a genuine debt consolidation program can be an excellent way to pay credit card debt, but that is not the only solution available out [...]

  2. Remona Banker says:

    Most banks require title insurance that looks for liens against the home. They do this to make sure there are no problems with the morgage like you are suggesting there willbe with your sale. There will be a lien against the home because you do not pay it completely off The other person may not get the morgage financing. If you fell behind in payments he could lose the property because of you. No clear title usually means no sale.

  3. [...] it comes to refinance auto loan with bad credit, sub-prime car loan lenders may be your best choice. You will end up wasting a lot of your valuable [...]

  4. katrina says:

    The information provided by this article is very good. I also want to share DMP that is debt management plan which is used when you have a complex debt problem. Debt management plan is basically a process which manage all you debt. For this you have to pay on monthly payment which is very affordable by you. It provides various debt management schemes that help you and make you debt free.
    It acts as a mediator between you and your creditors. You need not to talk with you lender regarding this matter. It is their responsibility to negotiate on your behalf. Most of the people depressed due to heavy burden of debt .Ion this case Debt management is considered the best solution that makes you free from the burden of debt It tells you the convenient way in paying off existing debt. It removes all stress regarding your debt and makes your life smooth. There are so many benefits by using it. Firstly it reduces the monthly payment and lowers the APR (annual percentage rate).Second it combine all your debt in one affordable monthly payment. Third it also works as mediator between you and your lender. It protects you from illegal activities.
    You can also use this service online. By surfing the internet you can easily find various plan you have simply select the plan according to your needs and fill the form online. The company that provides this service will automatically contact you. If you have any such types of problem then go for Debt management plan that is a good financial service.

  5. John says:

    “Where there is a will, there is a way”, The article is in support of this line. If some one decides to consolidate his or her loan, he can do it. Life with multiple debts becomes really horrible. Financial condition seems difficult to handle. Debt Consolidation can be a solution for it. If you can try to convince your credits about your poor financial condition and your inability to repay your debts, it can open a new path of debt free life for you. Lenders just want their money back and after looking at your poor condition, they will try to make the payment procedure favorable for you. Now, it will depend upon your negotiation skills, what the consolidated amount will be. It can definitely become less than the actual amount you owe due to waiving off late fees and other penalty charges. Now if you do not have the money in your hand, you can go for a unsecured loan. By these loans, you can pay back your high-rated loans and then you can make a best scheduled plan for the repayment of other loans. The refinancing option as mentioned in the article is also a good option to get money and consolidate the debts.

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