Smart Tips on Debt Consolidation

Maybe you haven’t noticed, but the U.S. economy has taken a big dump over the last year and this is the core reason that you might be experiencing financial difficulty. One thing that you don’t want to do if this is your case is to panic. Cool thinking and strong action are your only hope to pull yourself out of the hole you are in.

Many people quickly think of bankruptcy but bankruptcy laws have changed and it’s not as easy as it used to be to escape paying your debts. Also a bankruptcy stays on your credit record for years and this will hobble you when the economy rebounds and you want to make a big flaming comeback.

Debt consolidation is one option that is available to you if you own a home that has equity in it. This will allow you to combine all of your higher interest debts on one loan that carries a lower interest rate. The real estate market is flat now, so now is not the time to sell a home as any buyer is going to want to bargain you into the ground on the selling price.

With a home equity debt consolidation loan you can pull some money out of your home, pay off your debts and then consider selling the home when the market picks up in a year or two when you can get a better price for it. One key to solving financial problems is to take action on them before they are at your door step and talking to a qualified credit councilor would be a good first step to take.

Financial problems may be new to you but they are nothing new to a credit councilor, because they deal with them all day every day so they know the best roads to take and can tailor fit your personal recovery plan to fit your particular needs.