Don't procrastinate, consolidate

Sally is in a financial jam. She has balances on five credit cards, a car payment, mortgage payment and can’t keep up with how much she owes, who she owes money to, and when the payments are due. Sally is not alone. Many Americans are being stretched thin, but there are ways to help organize and bring all the finances together through debt consolidation.

People want to consolidate debt to lower interest rates, lower monthly payments, organize their finances, or to pay off debt quicker. Each reason is valid and can be done with relative ease.

One way to consolidate debt is to take out a personal loan. This is usually the quickest way to refinance your debt. The loan is based on your personal signature and ability to repay the loan. Personal loans usually carry the highest interest rate, but there are other options.

If you have equity in a vehicle (you owe less on the vehicle than it is worth) you may be able to borrow against that equity to consolidate your debt. Vehicles can be cars, boats, trucks, planes, motorcycles, etc. The interest rates on these loans are usually about half as high as the rates you would pay on an unsecured personal loan.

The best way to consolidate debt is through a Home Equity loan. Usually Home Equity loans have little or even no origination fees or closing costs. Interest rates are usually low and, the best part is interest you pay might be tax deductible, but always check with your tax advisor. These usually take a little longer to process, but do offer many benefits beyond just consolidating your debt.

There are many options to consolidating debt. Check with your financial institution and see what options they have to help you. Sally is on her way there now and will be able to sleep better knowing her finances are in control.