subject: Debt Management - Ways To Consolidate And Eliminate Unsecured Debt [print this page] When do debt problems look good? When they never arise. This is the rule that you should follow while managing your debts. Your efforts should be focused on preventing the debt problem from arising. If it does arise, it is an indicator of your failure. Read ahead for some methods that you can rely upon to keep your debts under control.
If you have a house that does not have any loan or encumbrance upon it, you can utilize the equity in your house to consolidate your debt. You can simply convert the unsecured loan into a secured one. If you do not repay the debts in full, you will be compelled to sell off your house to repay the same.
This may sound like a risky proposition for those who have only one asset and already owe money on the mortgage. However, if you have an asset that is completely free, you can make use of this option. However, it is important to point out that conversion of unsecured loan into a secured loan is not a smart move.
Not only will you be blocking your asset, you will also be unnecessarily extending the tenure of the loan and paying interest on the same. If you are earning lots of money, you can opt for a loan from your employer and request the same to be deducted from your salary.
However, this is feasible only if you enjoy the confidence of employer. In recessionary times, it will be very difficult to convince your employer to offer such a huge loan. Further, you should be careful not to let your debt rise again. You will not have your hefty salary to play with the next time.
You can make use of your good credit score and get a low interest consolidation loan. Lower the interest, better the deal. This is because your monthly repayment will go more towards repayment of the principal rather than payment of interest. This will bring your debt down faster and help you overcome all possible debt problems.
This is a most practical and pragmatic solution. You will be utilizing an asset that was created by prompt repayment of debt - your credit score. You will be utilizing this asset to reduce the total amount owed. You can use your existing credit card without any fear or worries because the monthly payment would be low and manageable. As a time goes by, you should repay the loan in full and become free of debts.
If you are one of the millions of Americans who has over $10,000 in unsecured debt, it is time you found out about the debt settlement options available to you. Due to the current economy an overwhelming amount of people are in debt, creditors are having no choice but to agree to debt settlement deals. To get free debt help click the following link: Free Debt Help
