Consolidating your bills good idea
Options to consolidate your credit card and other debts include a balance transfer credit card, an unsecured personal loan, a home equity loan or line of credit and a 401(k) loan.The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.In fact, many people did that back before the mortgage crisis because lenders allowed homeowners to refinance and cash out as much as 110 percent of the value of their homes. “In the mid-2000s, people used their house as a piggy bank.
Before you choose a debt consolidation loan think about anything that might happen in the future which could stop you keeping up with repayments.Debt consolidation is a strategy to roll multiple old debts into a single new one.Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.It’s a long article—but if you stick with me, you’ll know more about this highly effective method for reducing debt than 99% of Canadians.Debt, as you know, is a struggle against interest payments. And once your debt rises above ,000, it becomes very hard to pay down the interest.