Downsizing Can Help With Debt Consolidation
By Francine L. HuffMortgage Credit Problems Columnist
Having bad credit may
get you thinking about applying for a debt consolidation loan. If you want to
clean up your finances it's important to be very proactive about reducing monthly
debt payments and a consolidation loan can possibly help your situation. But
before you go out and apply for a debt consolidation loan you may want to
downsize your lifestyle to free up with some extra cash to pay off your bills.
Cut Unnecessary Expenses
Do you spend a lot of money each month on cable, phone
service, or gym memberships? Its time to take a hard look at exactly where your
money is going and whether or not those expenditures are necessary. Make a plan
to cut back on eating out, trips to your favorite coffee shop, or frequent
outings to the movies to find extra cash to pay down debts.
Sell Items You Don't
Need
Many Americans have a lot of stuff cluttering up their
homes. In fact, one in 11 American households owns self-storage space for all
that stuff, according to Slate.
Instead of stockpiling TVs, stereo equipment, old toys, and knick-knacks that
clutter your home, why not sell them to raise extra funds to put toward your debt
consolidation plan. If you're driving an expensive car that guzzles gas or is
too costly to maintain, trade it in for a more affordable vehicle.
Sell Your House
So you bought your dream house when interest rates were low.
The only problem is you used an adjustable rate or interest-only loan to buy it
and are now facing a whopping increase in your monthly mortgage payments. While
a debt consolidation mortgage loan can help get your finances in order, it may
be wiser for you to put your house up for sale. Depending upon the real estate
values in your neighborhood, how bad your credit is, and how close you are to
foreclosure, selling your house may be the smartest move you can make at this
time.
If you've downsized your lifestyle as much as you can and
are you are still having problems with debt, then go ahead and shop around for
a consolidation loan.
Source:
Slate
About the Author
Francine L. Huff is a
freelance journalist and the author of The
25-Day Money Makeover for Women. She
has appeared on a variety of TV and radio shows.
About the Author
Francine L. Huff is a freelance journalist and the author of The 25-Day Money Makeover for Women. She has appeared on a variety of TV and radio shows.
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