Regardless of the status of your debt consolidation agency, contact the Better Business Bureau to make sure it is a legitimate business. If you find that some complaints have been filed or come across some bad reviews online, find another option. If you have a life insurance policy, you may possibly borrow the money against your policy. Even though you are not required to pay back the amount, it is recommended that you do. Whatever amount you withdraw will be deducted from the final amount paid to your beneficiaries. If you make the decision to consolidate high-interest debts such as credit card balances into a different obligation, do your absolute best not to begin racking up new debt until the consolidated amount is repaid. If you are doing nothing more than moving debts to different places while continuing to spend, you will not reap the benefits that debt consolidation really can provide.
With the current low home mortgage interest rates, you may be able to refinance your home and take out some of the equity. Be careful to avoid borrowing as much as possible on your new mortgage. If home values should drop even more, you may end up owning a home that is less than the amount you owe on it. There is no harm in comparison shopping for consolidation loans.
The fact is that some financial institutions, or friends and family, may offer you a better rate than others. Whether it is a line of credit, mortgage, credit card or loan, compare the interest rate and terms and figure out which is the best bet. Many of us struggle with our finances. It is easy to let debt spiral out of control, and gaining control can be difficult. Debt consolidation can make the process easier and can provide you with much-needed peace of mind. It’s worked for thousands of people – try it and see if it works for you!
Howard Martell is the Owner of http://HomeProfitCoach.com\silver . Check us out anytime for marketing tips and a free subscription to our cutting-edge newsletter.