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.