Debt Consolidation Credit Counseling In Phoenix

Our debt is increasing daily, whether it is the national debt, debt being incurred by businesses or that occurring in our own households. Being in debt at a time the economy is failing only makes things more difficult. Owning an average of 7 to 8 credit cards does not help the situation either. It is just too easy to spend money that is there but not our own.

There are way to escape this situation assuming of course you have the will and desire to do so. One such way is through debt consolidation. More and more people are becoming familiar with this approach and many more should be. Instead of continuously robbing Peter to pay Paul debt consolidation makes it possible to pay off debt more easily and hopefully eventually to eliminate it.

With debt consolidation, credit card and other debt can be consolidated into a single loan which generally has more attractive interest rates hence a lower monthly payment than the combined payments of all the debt which has been consolidated. Both time and money are saved, not to mention a reduction of stress and anxiety.

The most commonly available debt reduction tool is the home equity loan. With a home equity loan you combine all debts into a single loan which carries an interest rate approximating the interest rate generally seen on a home loan. This can be significantly lower than credit card rates. This lower rate is possible because by using your home as collateral you are able to get a secured loan. Secured loans feature lower rates of interest.

The answer is yes though you may have to work at finding a source. Also a non-secured loan will carry with it a higher rate of interest. Credit card transfers are one possibility but the interest rates, except for the introductory "teaser" rates will generally be higher and can become higher still if you make late payments.

There are better ways to go including accessing life insurance or retirement funds which you may have. You can sometimes make either withdrawals or get low interest loans from these sources. Another source well worth looking into is the credit union. You can look around for a credit union which you are eligible to join. Working at a business or belonging to a union or a large organization may help in finding a good credit union.

There are also non profit organizations that assist with debt consolidation. They actually negotiate with your creditors to get fees waived and interest rates reduced. You can try this on your own but usually it is better to leave that to people who have the tools.

Debt does not have to be a major factor in your life even though it always seems to be with us to some degree. It can be hard to avoid going into debt in our culture but if you have the will and desire, help is available and you can benefit greatly from tools such as debt consolidation.