Although a home equity debt consolidation mortgage is often the cheapest form of debt consolidation, it is not your only option. This article discusses some other forms of debt consolidation loans:
Borrow Off Of an Investment Account
If you have a 401K or whole-life insurance plan, you may be able to borrow on the amount of money you’ve put into the account. However, it’s important to remember that you’re putting your life insurance or retirement plan at stake.
Transfer Your Balances to a New Credit Card
If you can find and get approved for a credit card with an introductory offer for low or no interest on balance transfers, you may be able to pay down a considerable amount of your principal before you are again charged interest. However, it is important that you then get rid of your other credit cards so that you’re not tempted to use them now that they’re paid off.
Get a Personal Loan
Some companies offer unsecured personal debt consolidation loans to borrowers with debt problems. However, unsecured loans carry higher interest rates then secured loans. There will also be more limits. Even so, personal loans generally have lower interest rates than credit cards.
Seek Help with a Debt Management Company
Debt management services will work with you to create a monthly budget and negotiate lower interest rates and monthly payments with your creditors on your behalf. They will then take control of distributing your monthly payments to creditors; you simply send them one combined monthly payment. Debt management services cost a small monthly fee, but it may be cheaper than the interest you would pay on a loan.
Visit Debt Sanity to view our Recommended Debt Consolidators online. Also, visit Debt Sanity for more information on a Debt Consolidation Loan for a Non Home Owner .