A No or Low Interest Consolidation is the Only Type of Viable Debt Consolidation
People call us all the time and tell us that they would love to pay down their debt or get rid of it altogether, but they are not quite sure of the best way to do it or even where to start. There really isn’t any one ‘best way’ that works perfectly for everyone – the best way for you depends on your situation and goals. That being said, a no or low interest consolidation is often the only viable type of consolidation.
When you are thinking about debt consolidation to get rid of debt, here are a few of the types you may be considering:
- Regular credit cards. This works…almost never. Why? Because credit cards are high interest – usually the highest interest of any type of consolidation product – and since debt consolidations often deal specifically with credit card debt, this option kind of defeats the purpose, no? 12% to 30% monthly compound interest makes them the most difficult to pay down, and even though using a credit card to consolidate can mean just one monthly payment, if the payment is all interest, you really are not making any inroads as far as paying off the debt.
- Lines of credit. Although lines of credit are a popular debt consolidation option, unsecured lines of credit will often run at 8%+ interest. While this makes them less difficult to pay down, they are still not the cheapest option.
- Home equity loans. If you have equity, these can represent a viable option, as long as the interest is low. They are easier to pay off as well. That being said, they will often run at 2% above prime or upwards, depending on credit.
- Consumer proposals. If you don’t have equity, or have a poor credit report that makes getting any real credit an issue, these can be a great way to consolidate debt. There is no interest, often a lower balance to be repaid, and one affordable monthly payment. The trade-off is that there are implications to credit, but this option will probably result in the lowest payment and is often the best answer for people who can’t reasonably pay off their debt.
The only way to explore all of your options for debt consolidation is to work with a company that can address any and all that are open to you.
At DebtCare, we deal with debt. A debt consolidation may just be the answer you’re looking for when it comes to getting rid of debt. Call us today at 1-888-890-0888.