Help with Debt Now

By admin • Jul 16th, 2008 • Category: Debt

One of the first steps in tackling your debt problems is to write down all your outstanding debts with the interest rate you are paying on each debt. The long term aim is to be a 100% Debt Free. Perhaps you want to be Living on a Dime forever? How does that help? Quite often the debt owing is to many different companies at different rates of interest. You might have a mixture of mortgage, car loans, store cards, credit cards, etc. The answer is Help with Debt by consolidation.

Let’s give an example of sample rates in the UK - mortgage (5.5%), bank overdraft (6.5%), car loan (7%), credit card (15%) and store cards (20% or more).  Yes - those store and credit cards are a killer!

How can I consolidate? A first step might be to approach your mortgage company and ask to extend your mortgage and pay off all those debts at a significantly lower interest rate. This one step can knock off a large amount of the montly outgoings. While you are talking to your mortgage company, you can ask them to extend the length of the loan - say from 20 years to 25 years. Again this will reduce your monthly outgoings.

An alternative approach is to play the credit card game! You have seen all those offers on transferring balances to a new credit card company - they typically offer 0% interest for 6 to 12 months.  Watchout for the transfer fee - often about 3%. But even with this extra added to the outstanding balance, imagine the effect of 0% on debt instead of 20% - big savings.

To complete the game, you will have swap your credit card company after the 0% period!

So try to consolidate your outstanding debts into a more bearable amount - this can save you BIG.

Use our calculators below to help work out how much you can save:

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