Would you like a way to lower the amount of money you owe in debt? Debt consolidation could provide it, no matter how much money you owe and to whom. Some programs set a minimum for participation, while others do not. Find out which one would work best for you.
Most People Incur Debt
Let’s start with a reality check. Debt is a normal facet of life. To build credit and a credit score, each individual must open at least one debt-creating account. According to Consumer Affairs, the 2022 Survey of Consumer Finances revealed that 77.4% of American households owed debt. The largest percentage of these debtors consists of homeowners with an open mortgage or home equity line of credit (HELOC), followed by 45.2% who maintain a credit card balance. Educational debt contributed to money owed in 21.8% of households. That doesn’t equal 77.4% because some households owed more than one kind of debt.
The Positive Outlook
So, most Americans went into debt to earn an education, buy and maintain a home, and build their credit score and history. Those all comprise very positive things. Sometimes, the debts add up, and getting them under control and reduced helps a household get back on track. Here’s how to do that.
Households with Less Than $7,000 Debt
As long as you’ve maintained a good credit score, taking out a consolidation loan can provide a quick way to reduce debt, according to Business Insider. By taking out a loan in the total amount of all of your debts from a lender like Symple Lending, and using the loan to pay them all off completely and all at once, you eradicate complex debt. Your household has only one bill to pay besides utilities, and the loan probably provides a lower interest rate than credit cards and educational loans.
If you don’t need that much money, try a zero-percent interest credit card with a balance transfer. Move all your debt to the new credit card and pay it off during the zero percent period, which typically lasts for six to 12 months.
Households with More Than $7,000
You may have a lot left to pay on your mortgage, or you may have piled up many credit card debts. Enroll in a debt management or debt settlement program. According to Investopedia, you’ll have to register every credit card with the program and agree to shut them all down. In exchange for this, many programs contact the creditors for you and negotiate lower amounts owed and reduced interest rates. It’s common for the debt to get cut by 30% to 50% by doing this. Non-profit agencies tend to offer better discounts and contact the creditors for you, while debt settlement companies give you a script and have you make the calls yourself.
Finding Your Solution
You can get your debt under control, whether you pick a loan from companies like Symple Lending or debt settlement through a non-profit like Care One. Choose the solution that works for the amount you owe and start paying it off today.
