3 Ways To Reduce Debt


3 Simple and Effective Ways To Reduce Your Debt

The first half of 2020 has proven to be difficult for the entire world as COVID-19 impacts global health as well as the economy. In the U.S., many people have lost their jobs and the full impacts have yet to be felt. If you are struggling with debt or a lack of income, there are some steps you can take to find debt relief services Sarasota FL. Here are three examples.

  1. Debt Consolidation

Many companies offer debt consolidation services, especially for unsecured debt. Credit cards with high balances typically carry very high-interest rates, which compounds the problem. It could take many years to pay off high-balance cards making the minimum payments. Consolidating credit card debt at a lower rate will typically save you money every month in outgoing expenses and pay the debt off sooner.

  1. Home Mortgage Refinancing

If you have enough equity in your home, you may be a candidate for a refinance. There are several factors that come into play to qualify. You must:

  • Have enough equity in your home relative to the debt obligation
  • meet the credit requirements
  • secure a rate that is lower than what you currently have

You could also consider taking out a second mortgage to pay off debt, significantly reduce your interest rate, and lower your monthly payment.

  1. Settlements

You can always call credit card companies and medical bill collectors and ask them to settle for a smaller amount. Companies will often accept a lower amount if it means they will get something rather than run the risk of bankruptcy and the entire debt being wiped clean. This often requires the funds to make a lump sum payment, however.

These are just some of the ways you can seek debt relief. These are trying times, but there are currently many programs to take advantage of as the economic toll has been felt across the entire country. Now is the time to act.