Five Ways To Consolidate Your Debt


Monthly bills never stop coming in. Energy bills seem to go a little bit higher every time you turn on the lights, and sometimes, bills are overwhelming. What if it was possible to use one bill to get rid of other bills? That’s what consolidating your debt entails. You get enough money to pay off all other bills, and then you’re left with just a single monthly payment to pay off the loan you got to pay all others off. There are many ways you could consolidate your debt with Denver Credit union but if you’re wondering which the best is, below are some options to consider.

Debt Management Plan

A debt management plan is one of the top ways you could get your debt consolidated with Denver Credit union. It works hand-in-hand with credit counseling which includes helping you get better terms on your loan. A debt management plan requires that you give up all your credit cards, stick to a set budget and conveniently pay off your debt within a couple of years. However, getting into a debt management program depends on your income, and if you can’t handle your debts, the credit counselor might recommend that you declare bankruptcy.

Personal Loan

Another way you can consolidate your debt is with a personal loan. This loan can either be given by the Denver Credit union or a bank. It allows you to borrow a sum of money you can pay back in installments within 12-60 months. Personal loans usually depend on your credit score and come with a fixed interest rate. When you choose to collect a personal loan, there is no need for collateral, so you don’t lose anything.

P2P Loans

This type of loan is getting more popular by the day. Borrowers go online and fill out an application; they are then matched with an investor who lends them money. These investors do this because they’re looking forward to getting a solid return on the investment made. It is one of the best ways to consolidate your bet, and you don’t even have to go through any stress to get it done.

Balance Transfer

This is the best option if you would like to consolidate your credit card bet. You take a higher interest credit card debt and transfer it to a credit card with a low-interest rate. For instance, if you have $3000 debt in one credit card with a 20%

interest rate, you can transfer the debt to a card with a 0.6% rate. One way to find a credit card with a low-interest rate is to surf the internet.

Home Equity Loan

Another option to consolidate your debt is the home equity loan. This option means that you take a loan against the current value of your home. This loan is secured because you stand the chance of losing your home if you default on payment. This loan type comes with a low interest rate and gives you an extended repayment schedule. The monthly payments are usually lower and more affordable than other debt consolidation options. You can get this loan from the Denver credit union, a bank, or even a mortgage broker.