Consolidating your debt Picture of nudes that people get on dating sites
Depending on how much money you owe and what your overall financial picture looks like, it may make sense to ask a friend of family member to lend you the money.
But if you opt for this method, it’s important to be sure the loan terms and repayment plan are clearly outlined, just as they would be if you were getting a loan from a financial institution.
If you work with a credit counselor, it’s important to research the organization before you get started.
Check with your state attorney general’s office and consumer protection agency to ensure it’s reputable.
Some lenders offer cash-out refinance auto loans that allow you to use the equity in your car to issue you a loan for other expenses, like consolidating credit card debt.
But if you’re unable to make your payments, you risk losing your vehicle.
In addition, some cards charge a balance transfer fee, which will add to the debt you must repay.
Also, the amount you transfer — including any fees charged — can’t be higher than your credit limit, which may not be high enough for you to pay off all your debt.
Consolidating your credit card debt into a single payment may seem like the solution to your financial troubles, especially if you can get a lower rate.
Home equity loans let you borrow against your home’s equity and use the cash to pay for just about anything.
This may seem like a good option because these loans often have lower rates than credit cards and personal loans.
Also, if you’re unable to repay the loan on time, you might be putting their finances at risk.
The following are other credit card consolidation methods that are available, but we don’t recommend them because they’re riskier than the options we’ve discussed above.
A personal loan can be used to consolidate debt, and the funds from a debt-consolidation loan can be used to pay off your credit card balances.