The Best Ways to Consolidate Your Debt Fast in 2020

The Best Ways to Consolidate Your Debt Fast in 2020

Do you feel crushed under skyrocketing debt and are desperate to improve your financial health?

Debt of any kind brings in stress and can make you feel helpless if you don’t have a plan in place at the end of the day.

Don’t bury yourself under insurmountable debt and start planning debt consolidation today before your finances get out of control.

We have listed down the best debt consolidation options for you to consider:

Borrow from a family member

Family members are the best rescue when you need financial support.

If you have a family member, relative or friend who can lend you money to pay off the debt, then it would be the cheapest way to start paying off the debt.

When you borrow money from your family and friends, you will be able to reduce the amount of debt right away.

You don’t have to pay any skyrocketing interests or prove your credentials.

You have more flexibility in paying off the debts and the payments are less risky. But make sure to treat it like any other loan and ensure timely payments.

The family is always forgiving but make sure to return all the loan so that you keep your important relationships intact.

Non-Profit credit counselling

Non-Profit credit counselling companies can teach you the secret to financial stability and give you free access to beneficial resources.

The primary objective of these companies is to provide relief by finding a solution according to your situation.

When you attend such counselling sessions be ready to discuss not only the causes of your financial debt but also your financial goals.

The counselor can create a result-oriented plan which will help you cut down your debts within time.

According to most of the debt management plans help you pay the outstanding balance within three to five years.

A non-profit counsellor will also help you gain financial stability by providing you with advice for correcting poor money managing habits.

Credit Card Balance transfers

If you are struggling to reduce your credit card debt, then try transferring it all at one place with a balance transfer credit card.

Opening a new balance transfer credit card has a big advantage: it charges you with a little or no interest for a number of months, and the payments you make will go towards the outstanding balance.

Most people are interested in this plan when they want to simplify their repayment methods. Instead of managing multiple cards, you will have to manage only one card.

But it is always advised to research thoroughly before taking a final decision as some cards end up being costlier when different factors are summed up like the initial fee, interest after the no-interest period, etc.

Borrow against your assets

You can borrow against your assets to stabilize your financial situation in two conditions: Secured loan and unsecured loan.

Unsecured loans are given on the basis of credit history and income.

You will need to have a guarantor who will pay the loan in case you fail to repay it.

Secured loans use assets like car, house, insurance policies, etc. as collateral which means the company will seize the asset once you fail to pay the loan.

Secured loans, on the other hand, allow the lender to put a lien on the asset and recover their money without hassle.

Because the loan is secured, you can get a large sum with a low-interest rate. You will run into no trouble if you pay your loan in time.

Debt consolidation is widely recommended as it is effective and helps to relieve the emotional stress that comes with debt.

Either with the help of a family member or other debt consolidation options, you will succeed if you are able to make consistent payments.