Three Sound, Debt Consolidation Actions

By Max Webber
In June 29, 2010

You may suddenly find yourself in a difficult financial position and desire a quick solution.  Unfortunately, decisions made in haste may not be advantageous to you in the future.  It is important to think about your intended debt consolidation solution to ensure you are not inadvertently placing yourself in a worse situation.  Consider the following three debt management actions.

Get a personal loan through credit unions

Credit unions may offer you a viable solution if you have good credit.  Unions typically can offer lower interest rates than banks.  Yet, it is necessary to make sure the union’s level of interest is not too high as compared to other options.  Even though their interest rates may be lower than those attached to your credit card, a credit union loan may have rates as high as 10% or more.

Take out a home equity loan

Home equity loans usually come with the benefit of lower interest rates.  In addition, home equity loans are tax deductible.  Many fixed-rate loans last for about fifteen years.  In addition to paying the principle and interest, those seeking such loans may also have to pay an origination fee; the cost for an appraisal; and, the cost of title insurance.

Get help from a credit counseling company

Debt consolidations can be sought through organized companies offering you immediate solutions along with a debt management plan, enabling you to stay on track with payments and allowing you to stay clear from debt in the future.  Search for available consolidated credit counseling agencies and see if you qualify for induction into their program.  In the most severe cases, such choices can help secure a person’s financial future, rather than continuously sinking into debt or having to declare bankruptcy.

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