Consolidating your debts into one can be done in a number of ways. A few common options are a debt-consolidation loan, a personal loan, or a 0% credit card. With just one payment versus multiple ones, you no longer have the need to track countless payment dates or experience numerous late fees and finance charges that only increase your debt.
A debt-consolidation loan is strictly for compiling all your debts into one and establishing one affordable payment. The payment amount you establish will also depend on how quickly you wish to achieve financial freedom. One payment is much easier to manage than multiples with varying fees and charges, not to mention several different payment due dates.
Personal loans have multiple uses. There are some lenders, like E-Loan.com, who don't charge an application fee. Although your credit history is a determining factor, loan limits and interest rates vary between different lenders. For example, you may secure a $30,000 loan but with a 9% interest rate or maybe a $15,000 loan with only a 4% interest rate. Be sure to compare lenders in order to find the best provider.
O% credit cards may sound too good to be true but they are not a mirage. They are a current source of good opportunity offering the chance to consolidate all your debts into one with no interest rate for six to twelve months. The two currently available are Discover More and Escape both by Discover. For twelve months, you get 0% interest rate with the Discover More and there's no annual fee. With the Escape card, you get six months of 0% interest with only a 3% balance transfer fee and an annual fee $60.
Once you've consolidated your debts into one and are making one payment, it's time to establish a budget that's customized according to payday and payment due dates. Implementing this crucial money management tool will keep you from accumulating future debt because all your funds will be preallocated. With a budget, you stay in control of your money rather than wondering where it all went.
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