Five Simple Steps To Debt Consolidation
Debt consolidation doesn’t have to be difficult.
So you’re looking for a debt consolidation answer? Look no further. I’m Max Anderson and I’m going to give you five simple steps towards debt consolidation.
Debt can be a scary thing. At first you’re just charging a couple of things here and there and before you know it, you’re in way over your head and the proverbial light at the end of the tunnel is nowhere to be found. You’re in deep debt my friend and there’s only one way out -- debt consolidation.
Perhaps you’ve thought of bankruptcy, perhaps not. But one thing’s for sure, you’re constantly thinking about how to get out of debt. Debt consolidation may be just the answer you’re looking for.
What Debt Consolidation Is
Debt consolidation is the consolidation of all of your debt into one, easy-to-manage payment. Sometimes people will use the equity in their homes for debt consolidation, other times people will take out an actual debt consolidation loan. While the avenues of debt consolidation differ, the end result is the same -- a consolidated debt with one easy-to-manage- payment.
So how do you approach your debt consolidation? With these five simples steps.
1. Assess Your Debt
The first step towards debt consolidation is to assess your debt. This means asking yourself a few questions. How much debt are you in exactly? How much are your total monthly payments? What interest rates are you paying? All of this information needs to be looked at before you pursue debt consolidation.
2. Assess Your Situation
After you assess your debt, you’re going to need to assess your situation. How soon do you need to consolidate your debt? Are you going to start missing your minimum monthly payments? Have you already missed a few payments? The answers to these questions will directly affect the debt consolidation options that are available to you.
3. Look at Your Options
Now that you know how much debt you’re in, how much you’re paying monthly and how soon you need to consolidate your debt, it’s time to look at your options. Do you own your own home? If so a home equity loan may be a good form of debt consolidation for you. Do you have good credit? If so, a debt consolidation loan may be a good option. If not, you may want to look to debt consolidation counselors for assistance.
4. Apply For Debt Consolidation
Once you decide which form of debt consolidation is best for you, it’s time to apply. The application process will differ depending on which debt consolidation method you have chosen, but the process can take anywhere from a couple of days to a couple of weeks.
5. Stick with It
The last and final step for debt consolidation is to stick with it. Make your monthly payments on time each and every month and don’t let your debt build up again. This means that you pay cash and don’t charge unless it’s an emergency.
By pursuing debt consolidation, you’ll be well on your way to a healthier and better financial future.