Finding solutions to reducing your debt takes some thinking and research on
your part. You have some good choices available to you and we shall list these
key debt reduction solutions for you right here:
1. Home Equity Loan or
Home Equity Line of Credit. Your 21% charge card can be reduced to nearly 6%
over night. How? By taking out a line of credit or equity loan against your
home. Equity loans and lines of credit are available at low rates and banks are
very willing to extend this service to you as your home is your collateral. Pay
off all of your credit card debt with the loan and you will achieve debt
reduction solutions immediately.
2. Replace high interest credit cards
with low interest cards. Yes, in this day of low interest rates, many credit
cards carry high interest rates. Ask your credit card issuer to reduce their
rate closer to market rates. If they refuse to budge, consider applying for a
low interest rate card from another provider. Transfer your balance to the
provider offering the best rate.
3. Debt reduction solutions can be
realized through the selling of other assets including: an extra car, antiques,
jewelry, extra property, renting out property, or liquidating some other assets.
Check around your home and see if there is something that you owe that can be
sold on eBay or locally at a yard sale. Take the proceeds from your sale and pay
down your debt, starting with the biggest debt first.
4. If you do not
owe a home, or the home you do own has negligible equity built up then you
cannot get equity from your home. Still, depending on your income, you may be
eligible for mortgage refinancing below market rates. Check with your bank or
local housing authority to see if you qualify for a low or moderate income loan.
The savings you realize through reduced mortgage payments may help you pay down
your debt.
Finding debt reduction solutions that work for you is an
important first step in eliminating debt. Make a plan and stick with it and you
will soon be living a debt free/care free life.
About the Author
Mark Lambie
is the founder of Fast Debt
Settlement We provide a free service that
matches you with debt consolidation specialists.
