Are you afraid that you won't be able to pay your bills on time? Does it feel like more money is coming out than going in? Do you pay only the minimum monthly payment on your balances? Have you had delinquent bill payments? Are you close to the limit on your credit cards? It's very easy to fall prey to debt, but there are options when you're ready to seek debt help: debt consolidation, mortgage refinancing, loans, tax debt relief options, and bankruptcy can help you escape debt.
When it comes to debt consolidation, there are several options for you to choose from; debt consolidation loans, a credit counselor, and debt settlement are three choices that differ substantially, but all have the common goal of reducing your debt. A loan is the quickest way to get rid of debt. Credit counseling will allow you to stay within your current budget while decreasing your monthly payments. Debt settlement lets you pay a single payment each month that is usually lower than the payments you're making currently. Check out our next page for a debt help overview.
Mortgage Refinancing and Other Loans
Refinancing your mortgage can lower the interest rate substantially, in addition to allowing you to use the equity on your home to help pay off your debt. Another option is taking out a second mortgage. You can then use it to pay off your debt. An equity loan, like a second mortgage, is taken against your home, but it's actually closer to a personal loan; the equity on your home is the collateral. Your last choice is a home equity line of credit, which is like a home equity loan. However, you don't have to use the line, unlike with an equity loan.
There are many different types of tax debt relief for you to take advantage of, but each option is unique. If you owe money to the IRS, an offer in compromise might be your best bet for getting rid of debt. Sometimes your tax penalties-which are generally added to your taxes-are inaccurate, and tax penalty abatement can help you clear such charges. With wage garnishment release, you can freeze liens or garnishments the IRS is charging you on uncollected taxes. Lastly, you can use IRS payment plans to ease the inconvenience of tax debt.
Consolidating Your Student Loans
About half of students in college use student loans to pay for their education. Paying off federal student loans should be your first priority; the rates on federal student loans go up every year, and it's in your best interest to secure the lowest rates possible. On the other hand, consolidating your private student loan is a much easier affair. You can easily combine multiple private loans with a lowered interest rate.