Though debt-consolidation is not always advisable because of all the problems it comes with and the fact that it could result in cycle of debt being created. However there are a few things that could be done that are low cost:
Home equity loans have a fairly low rate of interest and the interest that you pay is tax deductible so there are double benefits to it.
· Another thing that can be done is refinancing the property for a greater amount than your present loan. That way you have the same amount of interest to pay but you can use the extra amount to pay off your debt.
· In case your credit record is reasonable clean then you could probably still qualify for an unsecured loan. The interest rates are still probably quite low and will definitely be lower than the interest you’re paying the credit card company towards your credit card loan.
· You could also try to negotiate the rate of interest and other terms with your credit card company to see if they can reduce your interest rate.
· Another option is to try to refinance your car. This however could prove a problem because your car could be gone before you could repay your debt.
· You could also try to get help from a credit counseling organization because if your other option is to declare bankruptcy it is infinitely preferable to take help from such an organisation that can help you sort out your debt problems.
Debt consolidation is not always a good idea and there are other things you could do to get out of your debt problems. Its’ always good to consult a credit counseling organisation that could help you with your problems. It is advisable to examine your financial situation and see which the best route is for you.
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