Debt is something almost every person gets into in one way or another. Some debt is very good, like the ability to borrow money to purchase a home. How long would it take if you could not get a mortgage loan and you had to save money to buy a house? But some debt is suffocating like high interest rate credit cards that offer you the spending power now even if you cant really afford to be spending. Credit card companies want to extend credit because they make a lot of money off of interest rates and fees, while the average person gets deeper into debt that can negatively affect their credit for the future.
For those people who have a large burden of high interest rate debt, consolidating your debt may be a good solution. There are debt consolidation companies that you can contact, but you can also do your own debt consolidation by refinancing your mortgage loan or taking out a home equity loan.
You will need to qualify for a new loan which means that if you are deep in debt, make sure to contact a lender and get your debt consolidated before you miss a payment, or are forced to make a lat payment and your credit score decreases. Even a thirty day late payment can have a negative impact on your credit history report which will affect your eligibility for a refinance loan or a home equity loan.
Take charge of your debt and either make extra payments to get the high interest debt paid off faster, or consolidate the debt into a fixed lower interest rate monthly payment through a home equity loan or a home loan refinance.