Forget the Battle of the Bulge - are you losing the Battle
of the Bills? If so, don't surrender to your debt.
Instead, be smart, gather your bills, and read on because
I'm going to tell you about 5 ways you can consolidate debt
loans without using your home's equity!
CREDIT CARD TRANSFER - I know this is Old Faithful in the
financial services world, but if you can qualify for 0%
financing for a year, not only does it save you money, but
it may help you kick some unwanted debt out of your life.
Before transferring existing debt onto a new credit card,
keep in mind that if you can't pay off the balance before
the introductory rate expires, it could cost you in the
long run. If you're certain that you can pay the account
off during the introductory period it could be a wise move.
WHAT'S YOUR LIFE WORTH? - Do you have a whole life
insurance policy with cash value that you're not using
right now? If you do, you can borrow against its value in
order to pay off some bills. The good news is that the
interest rate on this kind of loan is usually better than
you can get on the open market and if you default it won't
hit your credit report. The bad news is that if you die
before you repay the loan, your beneficiary will receive
less money. Which is OK if you really don't like your
beneficiary anyway...?
NOT FOR PROFIT CONSUMER CREDIT COUNSELING AGENCIES- If your
back's against the wall, this option may be your best
choice for debt relief, because they can usually negotiate
better repayment terms than you can get on your own.
This option also has a possible drawback: depending on what
they negotiate, you could wind up with some credit score
damage by utilizing the services of a consumer credit
counseling agency.
But then again, minor credit damage is probably preferable
to the financial devastation that could come about if your
financial house of cards comes tumbling down.
In addition, these services usually offer free or low-cost
debt counseling services that can keep you from making the
same mistakes that got you into this situation in the first
place. You could chalk up the minor credit score damage as
the cost of a priceless financial education.
WHO'S YOUR DADDY? - I normally frown upon borrowing money
from family or friends, but if you have a relative that has
offered to help you out, you might want to consider taking
them up on it.
If you do, be smart about it. Don't borrow more than you
can afford to repay, have a written agreement - and stick
to it. Don't take advantage of the generosity of the
family member or friend.
Treat this obligation issue like you would any other credit
obligation. A hit on your credit report will stick around
for seven to 10 years, but potential damage to a
relationship can last longer. If you're mindful of the
dangers, your relationship will stay on firm footing.
RETIREMENT ACCOUNT - While it can be expensive to do so, if
it's only a limited amount of money and you eliminate the
accounts you pay off with the proceeds, this could be a
smart financial move, regardless of the fact that you'll
probably incur a tax penalty. Because this is your
retirement, this option should be used as a last resort.
See? It is possible to consolidate debt loans without
using your home as an ATM machine. Do you have any
creative ideas for consolidating debt? What are they?
----------------------------------------------------
Darrin Roseborsky is a Refinance Specialist with OMAC
Mortgages, seminar speaker and president of the Roseborsky
Group and HomeRefinanceCoach.com. Darrin can help you
MAXIMIZE your equity PROPERLY and help you find options
that make the MOST SENSE for your situation! Learn more
about how it works at: http://www.homerefinancecoach.com
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