Consolidating unsecured credit line debt

Others succeed because debt consolidation is part of a bigger plan to gain control over their finances.

So the first step in debt consolidation is simply to consider whether it will actually work for you.

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dating india chinese - Consolidating unsecured credit line debt

There are also some online lenders who focus on debt consolidation, and others that cater to those with bad credit by looking at nontraditional factors such as profession and education.

Most online lenders do not have a prepayment fee, so you could pay your loan off early without penalty.

“When you borrow from a HELOC, you may be spreading the debt out over a longer period, which means you end up paying more in interest,” Weston warns. Cons: This is a secured loan, which means that your house is on the line if you don’t keep up with payments.

A personal loan taken from your local bank or credit union or an online lender may give you a lower interest rate on your debt, or help you pay off your debt in a shorter period of time.

Many people try debt consolidation, but not all emerge better off.

Some borrowers wind up in worse shape, either because they run up their credit cards again or because their debt remains overwhelming despite the better repayment terms.You also can borrow against the equity in your home, a retirement account or a life insurance policy.Avoid surprises: Before you start, get a handle on your credit scores and get a free copy of your credit reports. This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it, usually for a small fee.There are many ways to consolidate your credit card and other debt, such as with a 0% APR credit card, a home equity loan or a personal loan.The option that best suits you will depend on your credit, available cash and other aspects of your financial situation, as well as your personality. What to do if your debt is insurmountable Get ready to tackle your debts Your options for debt consolidation Ask yourself a few questions to see if debt consolidation is really what you need: Am I serious about paying off my debt?You’ll have to change the behavior that got you into debt in the first place. Take a close look at your income and expenses and ask: If you answered “Yes” to either of these questions, skip down to read about your debt consolidation options.

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