All articles tagged with #debt consolidation
Originally Published 13 days ago — by Vox
The article explains how using a personal loan for debt consolidation can provide predictability and potentially lower interest costs compared to credit cards, emphasizing the importance of understanding your debt, checking loan rates, comparing options, and establishing good repayment habits to improve financial stability.
Originally Published 2 years ago — by CBS News
Credit card debt forgiveness is not government-sponsored, but individuals struggling with payments may negotiate with lenders or use debt settlement programs to reduce their debt. These programs involve saving money in a special account before negotiating with creditors, which can impact credit scores and may result in taxable forgiven debt. Bankruptcy is another option for complete debt forgiveness but also harms credit. Alternatives include debt consolidation loans, using home equity, debt consolidation programs, and financial hardship programs from credit card companies. It's important to consider the impact on credit and borrowing capabilities when choosing a debt relief strategy.
Originally Published 2 years ago — by Forbes
Utilizing your home equity can be a valuable tool for building wealth. By borrowing against your home equity through options like cash-out refinancing, home equity loans, or home equity lines of credit (HELOCs), you can access competitive interest rates and long repayment periods. This can be used to make home improvements, pay off high-interest debt, buy an investment property, start a business, or become an Airbnb or Vrbo host. However, it's important to consider potential drawbacks such as fees, overborrowing, and the risk of foreclosure. Exploring alternatives like low-interest personal loans may also be worth considering.
Originally Published 2 years ago — by CBS News
With the current economic climate and potential future rate hikes, it is advisable to tap into your home equity before 2024. By accessing your home's equity now, you can lock in today's interest rates and potentially refinance later. This can help pay off high-interest credit card debt, increase earning potential, fund home repairs or renovations (with potential tax benefits), and provide extra cash for the holidays. Data suggests that inflation is still a concern, which could lead to higher borrowing costs in the future.
Originally Published 2 years ago — by CNBC
As the holiday shopping season approaches, it's important to address credit card debt, which has reached a record high of $1.03 trillion in the US. To reduce credit card debt, consumers should start by understanding what they owe and reviewing their credit reports and scores for errors. Consolidating debt through a 0% interest balance transfer card or a personal loan can be effective strategies. Working with card issuers to negotiate lower interest rates or exploring debt settlement options may also be helpful. Finally, choosing a repayment strategy and sticking to it, while being mindful of spending habits, can lead to long-term debt reduction.