Ways To Consolidate Debt

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1. Get help from a nonprofit credit counselling organization– these organizations are usually free and advice on how individuals can repay their debts. They also come up with practical ways of paying back the credit. The organization can negotiate lower interest rates on behalf of consumers. The plan might also include paying one single payment to the organization who will pay off your debts on your behalf.  

2. Take out a personal loan– you can take out a personal loan from the bank or online lenders. The interest rate can be significantly lower than the credit card. A personal loan is not backed by any collateral. However, defaulting might end up with a lien on your wages.  

3.Borrow from friends and family– this is an easy way of consolidating debt. After borrowing from friends or family you can then pay them back over time. The interest on this type of loan is low to nothing. They will not check your credit score and you will get flexible repayments terms.  

4. Balance transfer– this is when you are offered 0 percent interest on balances that you transfer to the credit card within a certain period of time. Take higher interest credit card debt and transfer the balance to a credit card that has a lower interest rate.  

5. Borrow from retirement package– you can borrow the amount you need and might not be required to pay it back if the loan is lower than your policy. If you don’t repay it your beneficiaries might not receive anything when you are no longer around. It is then advisable to pay it back when your finances are in a better space.  

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