Debt is a tool that can come in handy when it is used correctly. When it’s used incorrectly, it can be downright devastating. If you are still trying to recover from the debt that you accumulated in 2012, you’re not alone. A lot of people have large amounts of debt that they don’t know what to do with, and they are considering all options. In this situation, consolidating might be the way to go for you. Here are a few ways to consolidate your 2012 debt right now.
Open a New Card
If you got yourself into debt with the help of credit cards, you might be a little reluctant to open a new card. However, using a new credit card might be exactly what you need to help get your debt under control. Credit card companies often offer special credit card deals that give you zero percent interest for a year or two.
Open one of these credit cards and then do balance transfers on your other cards to put all of the debt onto one. Experts like Charles E Phillips may recommend this type of strategy because it eliminates the exorbitant interest rates that most consumers pay on credit cards. While you have zero percent, you can pay down the balance as every penny you pay will go to principal.
Use That Equity
If you are a homeowner, using the equity in your house can be a great way to consolidate debt. The nice thing about using home equity to consolidate your debt is that the interest you pay is tax deductible. This means that you’ll get a tax deduction on something that you wouldn’t ordinarily get if it were regular debt. In addition to the extra tax benefits, you should also be able to get a lower interest rate with a home-equity loan or by refinancing.
Debt Management Plan
Entering a debt management plan is another option to consider when you want to consolidate. With this approach you pay a credit counseling service every month and then they pay your creditors for you. This is sort of like consolidating because you only have to make one debt payment per month.
Regardless of what consolidation strategies you use, make sure that you don’t accumulate more debt after you consolidate. It might be a lot harder to pay that debt off after you have used up all of the tricks you had available.