Debt Consolidation
Debt Consolidation Information.

Debt Consolidation – The Right Approach

by Kevin Clark
Looking to avoid debt consolidation? Debt consolidation is no longer a small issue today since large debt has become a much more common phenomenon. Most people overlook the seriousness of debt consolidation and the consequences of not understanding how debt consolidation works. Debt consolidation is a two sided coin – when used properly it can greatly help a consumer but miss use can have the opposite effect. In order to increase your odds of success, you will need to take advantage of the debt consolidation strategy that fits your needs best. (continued below)

Debt Consolidation – The Right Approach

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Approach the Credit Company Yourself
One of the aspects that you need to look at is calling the credit company and getting the best possible rate available. There is no point shouting at an executive but if you handle the situation with patience then more often than not, you will end up getting a better rate. It has been seen that certain customer service executives and representatives have authorization to help consumers get better interest rates and this depends a lot on your current loan situation. If the company feels that you might not have enough funds to make the next payment then they might go to the extent of lowering the rate. An variation on this is to contact a non-profit credit counseling company that can enroll you in a debt consolidation program.

Home Equity Loan for Debt Consolidation
The second option is to try and get a home equity loan, which is considered to be a good solution especially if you are thinking of opting for debt consolidation. A home equity loan will help you to borrow money against the equity of your home. The only disadvantage of opting for a home equity loan is the fact that the repayment time can be very long. Some of the loans have 15 years to 20 years repayment schedule.

Home Refinance
The third option that you can look at is refinancing your property for a larger amount than what you actually owe. This will help you to get some extra money, which can be used for paying off all your current or recurring debts having the effect of debt consolidation. Refinancing your home for debt consolidation should never be your first choice. It should be a last resort since home loan repayment generally spans a fifteen to thirty year period.

About the Author
Kevin has a life long passion for educating consumers on debt free living and successful credit management skills.