Debt Consolidation Loans Lower Interest Rates Paying down the balance on your debt can be a challenge. That challenge gets even ha
If your debt is spiraling out of control, you might benefit from a debt consolidation loan or an alternative debt settlement. Debt consolidation can allow you to combine all your bills into one easy monthly payment.
(prHWY.com) February 7, 2012 - Chicago, IL -- Paying down the balance on your debt can be a challenge. That challenge gets even harder when you have to pay a high interest rate. A 10 percent interest rate on a $10,000 loan can equal an extra $100 dollars a month that you have to pay on your debt.
Debt consolidation loans can make your interest rate a lot lower than what you are paying right now.
Refinancing Gets You A Better Interest Rate
Consolidation loans will very likely get you a better rate on your debt. For example, you might owe 20 percent interest on your credit cards. However, a home equity loan could get you a loan at 5 percent interest. What you do is use the money from the home equity loan to pay off your credit card debts. All that you have to do is then pay off your home equity loan.
Debt Settlements Often Reduce Your Interest Rate
It is possible to negotiate a lower interest rate on your loans. A lower interest rate will lower your monthly payment and give you some relief from your bills. Your creditors might not always be willing to reduce your principle balance, but your creditors should be willing to work with you on your interest rate. Your creditors simply want to get as much money as they can from you.
Find The Best Deal Out There
A great way to reduce your credit card debt is to transfer your balance to another credit card. There are many credit cards out there that are offering low interest rates in order to attract new customers. Take advantage of a low intro rate to help you consolidate your debt. Just be sure that you are able to pay off your debt before the intro rate expires. Once you have paid off your debt, canceling the card would be a good idea if there are any annual fees involved.
Debt consolidation is a great way to reduce your interest rates and lower your monthly payments. The last thing you want to do is only make the minimum payment each month. All that will do for you is ensure that you are never able to get out of debt. Consolidating your debt will lower your interest rate while allowing you to make bigger payments on your balance. You will feel so much better when you are finally out of debt.
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