The Best Debt Consolidation Moves You Can Make

If you're trying to do the right thing and be a financially responsible Boston citizen, then you may be looking for the best moves you can make to consolidate your debt.  It often amazes people that the best debt consolidation moves they can make are actually quite simple and you don't have to have someone do them for you. So, here are the best debt consolidation moves you can make:

• Home Equity Loan – Assuming you own a home, a home equity loan typically has a low interest rate and any interest you pay on the loan is tax deductible, which never hurts.  Most of these loans are fixed rate and have a 15 year term, this gives you 15 years to pay off your debt at a lower interest rate than you would get on a debt consolidation company's hard money loan.  There is usually an origination fee, plus you must have the house appraised and obtain title insurance. 

• Cash-Out Refinancing – This is another option for you if you are seeking debt consolidation and you are a homeowner.  Through refinancing your home you are able to get money back on your refinancing which will allow you to pay off your debt.  You can get a low interest rate, but you will be stretching the payments out for over 15 years, maybe up to 30. Because of this, the cost of interest is quite large and this would probably be a "one time only" choice.

• Get a Personal Loan – This option is good for those who don't have horrible credit.  Through an unsecured loan you can pay off your debt and then pay off the new loan, which will usually have a lower interest rate.  If you can get one through a credit union, you can usually get an even lower interest rate.  The interest rate may not be that much lower than your credit card, but it's better to lower it a little than not to lower it all.

• Refinance Your Car – This debt consolidation method is one that most people don't even think about it, but it is secured and you can borrow against it.  The danger is that you might wear out your car before you pay off your debt.

• Negotiate Better Terms on your Credit Cards – You can do this by simply calling your credit card company and asking them.  They may oblige.

As you can see, there are several options available to individuals in Boston, and the country for that matter, that allow you to do debt consolidation yourself.

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