My First Car Loan

When you add up the debts you have, do you feel overwhelmed? If you owe a lot of money to all kinds of creditors, you might have trouble repaying the debts. If you make minimum payments, your balances might not even go down much each month. At some point, you might decide to consolidate your debts. Here are some of the various options you can use to achieve this goal.

Use a Credit Counseling Program

Credit counseling is a type of service that you can hire if you need help paying off debt. Through credit counseling, you get a counselor that helps you create a plan for paying off your debts. While you do not actually get a loan to consolidate your debts through credit counseling, your plan can consist of making just one monthly payment. You pay the monthly payment to the credit counseling firm, and they pay your bills with this money. The benefit of this option is that you will not have to qualify for a loan to use it. You will have to pay fees for the credit counseling services, though.

Take a Personal Loan

You could also try to take out a personal loan. A personal loan is a secured or unsecured loan that provides you with cash in your pocket. To consolidate your debts with a personal loan, you take the proceeds and pay off every balance you owe to your creditors. After doing this, you owe only one payment a month to the personal loan lender. The benefit is that you might save money on interest by consolidating your debts. The downside is that you might need a decent credit score to qualify for the loan.

Refinance Your Mortgage

Another option is to refinance your mortgage with a cash-out option. You can use this option if you have equity in your house. If you have equity, refinancing with a cash-out option provides a way to get cash in your pocket. You can take this cash and pay your bills with it. Once you do this, you will have just one payment to make each month.

These are three of the top methods you can use for consolidating your debt. If you would like to learn more about these options, talk to a local lender or a credit counseling firm about debt consolidation options available to you. Consolidating debt is often a smart move, as it can help you save money and repay your debt faster.