With numerous global economies currently teetering on the verge of recession (or already in recession), there are a huge number of individuals and families out there who are finding themselves struggling with debts that they cannot pay.
For many, the monthly demand for bills can become a complete nightmare as the repayments start to grow larger than the amount coming in. This is not helped by a decline in the jobs on offer and the wages being paid and an increase in the cost of living.
So what can people do?
Whilst there are no easy answers for clearing the debts completely, there are some steps people can take to consolidate their debts and put into place a plan for paying them down completely.
This consolidation of debts will normally involve bringing down the number of creditors who have owned money and reducing the amount that needs to be repaid. How is this possible? By following one or two of the following suggestions:
Credit Card Transfers
If someone has numerous credit cards with outstanding balances and high-interest rates then the best thing they can do is look to transfer all of them together into one single new credit card, taking advantage of interest-free balance transfers on offer.
There are always offers like this out there, as credit card companies compete for your business. If you are lucky you will be able to find a company offering you 0% interest on all balances transferred onto the new card for 6 months or even a year.
This will serve to reduce your monthly outgoings significantly into one easy to manage payment and will reduce the debt you accrue as there will be no extra added interest.
Talk to Your Creditors
If you are struggling with your debts then credit companies will always prefer that you talk to them rather than missing payments and getting behind.
If it is one bank or credit institution that you owe money to over several different loans then all the better – if you chat with them they will be able to suggest some kind of restructuring of your debts and organize a manageable repayment schedule.
Family & Friends
If you are really struggling then don’t be too proud to talk to friends or family. Of course, you don’t want to ruin relationships and cause problems so it is best to put in place a solid loan repayment scheme as if they were a financial institution.
On the plus side though, if you borrow a lump sum from your parents or family and can clear the whole sum then you will be able to repay them every month without incurring massive interest charges.
Take Out an Unsecured Loan
If you don’t have your own home or are unwilling to borrow against your home then you may be able to take out one unsecured loan to cover all your debts and switch them to one, lower interest payment.
However, to qualify for an unsecured loan, you will need to either have a very good relationship with your bank, or very good credit history.
Take Out a Mortgage or Secured Loan
If you are lucky enough to have your own home, and better still have equity in that home, then your best option is to either remortgage or take out a secured loan against your property.
By doing this you can clear all your debts, from credit cards to overdrafts, outstanding loans to payday loans to car repayments into one monthly payment at very low interest rates over a much longer repayment period.
5 Tips for Getting The Best Debt Consolidation Help
For many people who are in debt, getting a debt consolidation can be an ideal way for them to have a break with debt relief. Along with the process of debt consolidation, you are going to have all your unsecured debts combined to become just one loan which is easy for you to manage.
Sometimes, your debt consolidation company could assist you to reduce your minimum payment per month as well as rates of interest, that may enable you to take care of your hard-earned money more effectively.
Opted For Debt Consolidation Loan
In case you’ve opted for a debt consolidation loan to settle your financial troubles, then you need to look for a reliable debt consolidation company which could assist you in managing your debt issue for the reason that if you happen to find an unethical debt consolidation company to resolve your debt problem, you may create yourself even more debts. To learn how to find the best debt consolidation loan, you may refer to these 5 tips.
1. Search For More Information Both Online and Offline
The most effective way to be able to discover a reliable debt consolidation loan company is with the endorsement coming from someone you know who had chosen the debt consolidation company services which is of reputable and professional.
If you can’t get any recommendation from any of your friends or relatives for a reliable debt consolidation company, then you can find one from yellow pages or the easier way is just to search for them on the internet.
After you get a list of the companies, the next thing you need to do is shortlisted them and send your requests to them to ask for their debt consolidation service information package.
Bear in mind that you shouldn’t pay anything for getting the service’s details of the debt consolidation loan company. So, you should make use of these useful resources to request the necessary information for you to compare their services. Finally, you can decide on which company you should go for.
2. Identify Signs of Scam Warning
During your search for debt consolidation loan companies, you need to place yourself on a high alert for any sign of a scammer. If you find some companies offering you service with an incredibly high fee, this can be a red flag; whilst incredibly low cost as well may come with many hidden costs.
Therefore, you have to figure out exactly how the company going to charge you if you choose their service, the thing that you need to alert yourself is to check on the hidden cost.
Never trust those company who promises too many guarantees and also those who offer debt consolidation loan package which looks too good to be true. Keep in mind that your financial troubles will not disappear overnight.
You can immediately identify a company is telling lies if they claim that they can get rid of your debt in a very short period of time.
3. Check If Any Complaint Is Filed Against the Company
There will be the case that a debt consolidation loan company is legit but their services can be terrible and not able to offer much help to fix your debt problem. To prevent yourself from dealing with such an incapable debt consolidation loan company, you need to take some time to check on the feedback or complaints lodged against the company.
You can contact the Better Business Bureau in your area to check is there any complaint has been filed against the companies that you want to choose for the services.
4. Do not Make Any Decision By Impulse
You might want to meet with every one of the debt consolidation loan companies that you shortlisted and that you think can assist you in fixing your financial troubles. Needless to say, at the time you speak to these companies, you will find almost all of their recommendations and proposals can really impress you.
Even though you wish to fix your debt problem as soon as possible, you shouldn’t decide on picking any debt consolidation plan and services right on the spot. Rather, you should inform the companies in which you will want to have some time to think about.
Don’t rush and when you reach your home, you can then slowly make a comparison on all services offered by the debt consolidation loan companies you have personally paid a visit to and choose the debt consolidation company that you think is the most suitable for you.
5. Read All the Fine Print Before Sign up for Any Contract
Once you choose to sign up for a debt consolidation loan program, you certainly are going to be asked to sign a contract or an agreement related to the suggested financial debt solution plan. Make sure you read the agreement in detail before deciding to sign the contract.
Never put your signature on the agreement in case you are having doubts or questions on any part of the agreement. You should check out with the company to clear your doubts first.
Christian Debt Consolidation for Christian Believers
Typically, Christian believers tend to get uneasy when they are pile up with debts as well as when coming to the time they want to go for debt consolidation loans. This is exactly the reason why Christian debt consolidation services currently have popped up and such loan companies able to offer Christians with superb solutions to eliminate their troubles regarding their multiple debts.
There are a lot of debt consolidation lenders exclusively provide Christian clients with their Christian debt consolidation services which can be the newest service that assures debt solutions for Christian clients.
Purpose of Christian Debt Consolidation Services
The purpose of the Christian debt consolidation loans is specially designed for serving those Christian consumers who are facing trouble with their debts. You are going to designate with a credit counselor who is going to examines your credit history as well as your debts.
When they finish analyzing your financial status, the credit counselor is going to advise you on some debt consolidation loan options which can assist you to consolidate all your debts together in an appropriate way.
The Christian debt consolidation lenders will as well help the customer in setting up a repayment schedule. On top of that, the credit counselor will give spiritual counseling that can assist you to be aware of the technique that you can use to prevent getting debts again later on.
The service that offers by the Christian debt consolidation is for the reason that they understand most Christian believers earnestly make an effort to pay back the debt in good faith and obligations. That is the reason why most of these companies are willing to offer favorable terms to Christian customers.
Through providing this specific service the debt consolidation company can stay safe by providing loans to their Christian customers. Recently, there are a lot of debt consolidation companies been offering this type of Christian debt consolidation service and have received a good response from their Christian customers.
Benefits of Christian Debt Consolidation
The most significant benefits of Christian debt consolidation service tend to be that things are designed uniformly in compliance together with the teachings of the Bible and Christian belief. The counselor from the loan companies will provide customers with spiritual counseling to helps them understand just how they can steer clear of debts.
The loan company supplies all the services within a proper approach such as negotiations with different creditors, debts consolidation, a lower rate of interest negotiation, the arrangement of payback schedule, etc.
Just similar to all other sorts of debt consolidation loans, you will find many types of Christian debt consolidation services such as student loans, bad credit, credit card loans, bills overdue, etc.
A Christian debt consolidation loan has the greatest benefit compare to others since it provides simpler and easier terms to Christian customers.
The conditions and terms for multiple loans such as bad credit debt consolidation, credit card debt consolidation, bill consolidation, student loan consolidation are being offered to Christian customers to ease them from getting worried about the repayment of their debts.
Apart from that, you need to know that the majority of the Christian debt consolidation companies are having the non-profit status and therefore their main objective is assisting their Christian associates to get rid of their hefty debts.
For the interest rate calculation, most companies are offering in the ranges of 6% to 8% and allow the customers to pay off the debts in a time frame of 3 to 6 years. These companies as well permit their customers to make one payment on any day in a month of their preference.
Christian financial debt counseling is based on the approach of the Bible and the counselor will not only look at the debts but will take into the concern of the customer’s condition such as loss of job, illness, accident, etc.
If they found out that the customers are having one of these conditions they may leniently freeze the repayment. After all, for Christian believers to resolve their multiple debt issues in good faith, they should go for the Christian debt consolidation service which is a superb approach for them.