It is normal over the holiday season, both during and afterwards, to need some help with financing. The holidays are expensive with all of the family functions and gifts, and your bank account can take a beating. After the holidays, many are left with credit card balances and even payday loans. If this year was especially hard on your wallet, we can help. Consolidating debt to enter 2017 on fresh financial footing is a great idea.
If you did most of your holiday spending on credit cards, you could be in a particularly rough spot. This is especially true when payday loans are involved, and it can get very expensive to repay everything. If that isn’t a reality, the best thing to do to start the New Year off right is to consolidate – this way you end up with one reduced monthly payment.
There are many different ways you can consolidate debt. Here are just a few:
One great way to consolidate debt is by using your home equity. Many people choose to take out second mortgage financing to do so, or obtain a home equity line of credit. The benefit here is that you get a much lower monthly payment and usually at a much lower rate of interest.
Another great way, especially if you don’t own your own home or have equity, is to obtain personal loan financing. Not only will this get rid of the hefty payday loan fees (and help you avoid rolling those loans over again and again) and sky high credit card interest, it will group all existing debts into one. A small personal loan, one that reports to your credit report, can be a great way to boost your credit and make the debt far more manageable.
What if you have bad credit? Most places require you to have good credit, or at least decent credit, in order to be approved for a consolidation loan. This is because the lower your credit score, the higher the risk you represent to the lender. Most banks, for example, won’t look at applicants with low credit scores, and if you’re an undischarged bankrupt, forget it!
Don’t worry – you have options. Not all lenders are as unforgiving. That being said, not all lenders who administer bad credit loans are fair – many will take advantage of your bad credit situation and gouge you with fees and high interest rates.
At Prudent Financial, we are committed to helping you regain strong financial footing, even if you’re an undischarged bankrupt, and we won’t charge you an arm and a leg to do so.
For more info, call us today at 1.888.852.7647.