Two Great Practical Ideas For Debt Consolidation

With the economic slow down that our country is currently experiencing many people are trying to cut expenses as much as possible and debt consolidation is a good start. Each month as both gas and food prices continue to rise we can see a strain being put on our finances to make ends meet. It can feel a bit overwhelming as you receive all your monthly statements for your debts. However you can consolidate some of this debt which can help alleviate the feeling of being overwhelmed.

When you start to consolidate your debt you will start to eliminate some of the monthly statements that you are receiving and this alone is a stress reliever. There are several ways to get your debt under control and here we have put together two ideas to help you do just that. One of the quickest and easiest ways to do this is by getting a home equity line of credit.

If you are a homeowner you can borrow against the equity you have in your home. These lines of credits are easier to get because the bank has your home for collateral. With the credit market tightening however you need to have about 30% equity available in your home. Most banks will approve you very quickly and give you access to the money as soon as the account is available. Use these checks to pay off any high interest credit cards balances. This will quickly save you money as more of your payments will go towards the principle amount of your debt and less goes towards the interest.

Another way to consolidate bills is with a good credit card offer. If you are a good customer with your credit cards chances are that you will receive offers to consolidate your bills on their card. They will offer you a very low interest rate for a predetermined amount of time. If you don't have access to a home equity line of credit this is a viable option.

However you need to make sure that the deal you are offered is a good one. First check to make sure that the transfer rate is good. Many credit card companies will charge fees to consolidate your bills and some of them have a maximum amount they will charge you and others will charge you up to 3% of the total you transfer on to the card. You should also make sure that you are given more than six months time at the promotional rate otherwise the fees may not be worth it.

With the stress that carrying a lot of debt can add to your life you may want to consider consolidating some of it. These two ways can help you save money and relieve stress. However it is important that once you take that step toward debt consolidation that you get your spending under control so that you don't find yourself in the same situation in less than a year's time, take this opportunity to clean the slate.