Saxton Associates and Apply.Credit9 is simply not the best way to consolidate debt. Saxton Associates, Credit9, apply.credit9.com, Hornet Partners and Polk Partners have recently been flooding the market with debt consolidation and online loan offers in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2019 Reviews, the personal finance review site, has been following Saxton Associates and Credit 9 for some time now
If you find yourself deep in debt and you want to raise your credit score, then you should look for solutions to reduce the burden of your debt quickly. Credit cards often carry high-interest rates, which makes it difficult to pay back the interest once the debt starts mounting.
To pay off your liabilities, you should look for a way to consolidate your debt.
Here are the best ways to pay off debt.
Online loan: A Smart Way to Consolidate Debt
Personal advisors loan offers may be one of the most viable ways to consolidate debt. You can use a online loan to pay off your outstanding credit card balances. Best 2020 Reviews has compiled hundreds of online loans and online lender reviews so you can educate yourself. This method will work only if the interest rate that you are paying on the online loan is lower than the overall interest rate of your credit cards.
Besides possibly lowering your interest rate, an online loan is one of the best ways to consolidate debt since it simplifies payments. You will have to make just one payment rather than multiple monthly payments.
Before committing yourself to any online loan, you should first shop around and compare different online loan reviews for interest rates, terms and conditions, penalties and fees.
Credit Card Balance Transfer Offers
A balance transfer offer through a credit card is one of the other ways to consolidate debt. This method is a good way of reducing your interest expenses temporarily because most balance transfer cards do not charge fees on balance transfer.
Take a Loan From Your Retirement Account
Although taking out a retirement account loan may be possible, it is one of the riskiest ways to consolidate debt.
Such a loan should be the last resort if you are struggling with debt and cannot find a way out. You should first try to exercise other options before taking out a retirement account loan due to the serious risks that it entails.
How much loan you can take out against your retirement account depends on your retirement plan terms and conditions. You may be able to take out the lower of $50,000 or 50% of your account balance. However, you should first speak with your employer about borrowing options because each retirement account plan has different terms and conditions.
One of the greatest drawbacks of a retirement account loan is that you will not earn money on the amount that you have withdrawn. This essentially defeats the purpose of a retirement account since it is meant to be an investment vehicle for you to earn money on your savings. If you are not careful, you can lose quite a lot of your investment and accumulate losses that may hurt you when you retire.
Tap Into The Equity In Your Home
With a home equity loan, you can borrow an amount against the equity in your home. Consumers often take out a home equity loan for home improvements. It is also one of the ways to consolidate debt.
The interest rate on your home loan is likely to be relatively low since you are putting up your home equity as collateral. A major drawback, however, is that if you fail to pay back your home equity loan, then your creditor may put you in debt collection and be legally allowed to sell your home to recover the amount that you owe.
Take a Personal Loan From Family
One possible means of consolidating your debt is to borrow from family members. The proceeds received can be used to pay off your credit card balances.
When taking out such a loan, you should ensure that you discuss all the terms and conditions, including the interest rate and monthly amount. If you are on good terms with your friends or family members, then you may be able to get a low interest rate or even no interest rate at all.
One of the biggest pitfalls of getting such a loan is that it can possibly ruin your relationships if you do not pay on time but it may worth avoiding declaring bankruptcy.
Debt Relief Programs
Debt relief programs assist their clients in negotiating better terms (such as lower interest rates) with their creditors. As a result, it is one of the ways to consolidate debt.
You may be able to get several benefits through debt relief services that can make it easier for you to pay off your debt. The service provider can reduce your total liability and lower your interest rate if it is able to negotiate successfully with your creditors.
Credit Counseling
You can get in touch with a nonprofit credit counseling entity to devise a debt management plan. The organization will help you to create a realistic budget, identify the reasons you are in debt and provide advice on how you can repay your debt. Nonprofit credit counseling is one of the most effective ways to consolidate debt.
One of the reasons this method works well is that the nonprofit credit counseling organization will negotiate with credit card firms on your behalf to reduce the interest rate. They may also negotiate with your creditors to reduce your debt balance, reduce the repayment amounts and waive fees.
Nonprofit credit counseling organizations communicate with their clients in person, online or via telephone. If you are interested in this form of debt consolidation, then you should do your research to find out more about the firm that you want to work with.
The credit counseling organization will consolidate your debt in one amount so that you make just one monthly payment. You can save yourself time and effort by making just one payment instead of several monthly payments.
