If you have debt from multiple sources, it may be wise to consolidate it, but that comes at a hefty price. Here's how to get debt consolidation loans.
Keyword(s): debt consolidation loans
Want to know a startling fact? In 2010 the total amount of debt in the United States was over $2.4 trillion!
Having large amounts of debt can be overwhelming for anyone.
And unfortunately, it's becoming more and more prevalent in our society.
If you are one of the many Americans looking to wade your way out of debt, there are options for you.
You are able to apply for debt consolidation loans that will free you from multiple payments each month.
Read on to see how you can consolidate your debt.
Add up your debt
You know that you're in over your head with debt. But are you aware of the exact dollar amount that you owe back?
Before you start scouting for loans, make sure you have the exact figures in place. It's difficult to start paying off your credit card debt if you aren't aware of the total you owe.
Take all of your loan payments and credit card monthly payments and add them up. Make sure you take into account the amount of interest you are expected to pay as well.
This will give you a definitive dollar amount to work with.
Now that you know how far you are in, you can then start looking for debt consolidation loans that fit your specific situations.
Choose your loan
There are a couple ways you can consolidate your debt into one monthly payment.
Depending on your situation, one of the following types of loans may work better for you. You can choose from either an unsecured loan or a secured loan. Both have pros and cons to each of them.
If you have a decent credit standing, an unsecured loan may be a good choice. These types of loans allow you to borrow against your credit to combine all your debts into one monthly payment.
Some of the benefits of these types of personal loans:
- Potentially shorter repayment time
- No risk of losing your assets
- Possible lower interest rates
These types of loans are for those individuals who have a lot of assets. So if you own your own car or home, you can borrow funds against these assets.
If you don't have a super great credit history, this could be a better choice for you.
Some positives of secured loans:
- You are not considered high risk, so it is easier to obtain these loans
- The amount you are able to borrow may be higher than an unsecured loan.
- The interest rate may be considered tax deductible.
Where do you obtain debt consolidation loans?
There are tons of ways you can find a loan provider that can help you obtain a consolidation loan.
Check with your local bank to see if they offer any of these types of loans. You can also take a look at the internet to see if there are any internet financial institutions that can work with you to get a great interest rate.
If you are still struggling to wade through the many options you have, take a look at the professionals who can help you find any type of financial products you may need.