Home » Finance

Great Ideas For Debt Consolidation

Jul 1, 2008
Being in debt is no fun at all, yet many of us find ourselves in this situation all too often. There is not much you can do to get yourself out of if other than start paying off what you owe. However, there are ways to consolidate your dues to make it easier for you to pay back what you owe in smaller amounts each month while reducing the amount of total you pay.

It may sound crazy, but you can actually consolidate all of it into one big amount rather than multiple small ones. And, by doing so, you will have a smaller monthly payment and pay that off faster. Because of this you will want to consider debt consolidation.

The following suggestions are just a few ideas for consolidation.

Transfer High Interest Rates

More than likely some of your debt is on credit with towering rates. If this is the case, you will want to transfer as much of the debt on such rate cards to those with low rates. Or, you could always apply for a new 0% one for a year, transfer your huge balances, and pay them all before the rate is charged on it.

This is always a good plan because you can take advantage of 0% interest yet you don't have to worry about paying the high one on your other cards. If you don't have good enough balance to apply for a new one then consider simply paying your lowest APR card each month and transferring balances to the card from other high interest cards.

You will just be changing the dues from one card to another, but the difference in the rate charged could really make a difference to your bottom line. As you relieve credit card outstanding your financial score will increase and then you may qualify for a larger line of amount. Just remember not to add any new outstanding to your current one or you will never get out of the cycle.

Home Equity Line Of Credit

Some people find a good way to pay off credit card dues with a home equity line. This is a personal loan that is secured by the equity in your home. It is great because you receive a lump sum and simply clear all of your high interest cards. You consolidate your dues into your home equity line of credit and this usually has a lower rate.

With this, you will be able to clear off the dues faster and with less rate charged. Just make sure you don't begin using the cards again. Doing so could cause you to overextend yourself and you don't want to do that considering your outstanding is secured by your home!

Personal Loan

You could use a personal loan for debt consolidation as well. Just apply for a personal loan and see how much you are approved for. Then, take that money and clear off your high interest outstanding. This will consolidate it into a lower monthly payment and that is what is important.
About the Author
Rating:
Please Rate:
(Average: Not rated)
Views: 347
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources