Government help consolidating debts

If you are thinking about debt consolidation, you might want to first consult a non-profit credit counselor.Many people get into debt because they can’t afford to make monthly debt payments on top of paying for daily living expenses.There are two types of debt consolidation loan: Debt consolidation loans that are secured against your property are sometimes called homeowner loans.You are more likely to be offered a secured loan if you owe a lot of money or if you have a poor credit history.Some creditors might be willing to accept lower minimum monthly payments or change your monthly due date because they would rather get paid less on a regular basis – than not get paid at all.Here’s what you need to know if you are considering these options for consolidation: Transferring different debt balances to one credit card account Many credit card companies offer zero-percent or low-interest balance transfers to allow you to consolidate your debt on one account.However, not all debts can be combined into a consolidation loan — a mortgage cannot be included, for example.Your financial institution will be able to tell you which of your debts you will be able to pay off with the loan that they grant you.

The goal is to make sure you can make ends meet on the basics: housing, food, health care, insurance, and education.A debt consolidation loan is a single loan (generally from a financial institution) that allows you to repay your debts to several or all of your creditors at once.You are then left with only one outstanding loan — to the financial institution.The first step toward taking control of your financial situation is to do a realistic assessment of how much money you take in and how much money you spend. Then, list your "fixed" expenses — those that are the same each month — like mortgage payments or rent, car payments, and insurance premiums.Next, list the expenses that vary — like groceries, entertainment, and clothing.Consolidating all your debts into one loan might appear to make life easier but there might be better ways to pay off debts.Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.If you’ve got lots of different debts and you’re struggling to keep up with repayments, you can merge them together into one loan to lower your monthly payments.You borrow enough money to pay off all your current debts and owe money to just one lender.If you can’t stop spending on credit cards, for example because you’re using them to pay household bills, this is a sign of problem debt.You should get free debt advice before taking out a debt consolidation loan.

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