HARP – Dealing with debt

If credit card debt, loans, and poor choices have burdened you for too long, there are solutions. Let’s take a look at some of the various ways to ease this financial burden and minimize our debt.

Begin by writing your debts down on a sheet of paper. Be sure to include credit cards, mortgage, automobile debts, and any other money that you may owe. List each debt along with interest rates and monthly payments. Now determine how much each debt will cost you when all is said and done. Don’t forget to factor in any interest.

Figure out the damage: You may want to consider getting a debt consolidation loan as a second mortgage. This will provide you with immediate relief. Note that this solution is not ideal for every situation. However if this does indeed make sense in your case, then you may want to further investigate.

Second mortgage: If you do indeed opt for the second mortgage, shop around for loaners. Be sure to bid out to at least three reputable companies for rates. Whichever agent has the best rates should handle your case.

Refinance: Another option may be to refinance your current mortgage. Again this is not ideal for every situation. However if it makes sense for you, investigate it further. Be certain to consider how this will affect future plans if you decide to choose this route.

Consolidate: If you are one of the many of us who have multiple credit card debts, consider transferring everything onto one card. By moving everything to the card with the lowest rate, you will take a major step in lowering your credit card debt.

Borrow: If you have the luxury of borrowing money from a family member, you may want to consider it. A low rate loan from a family member may save you some big bucks in the long run. If you are indeed in a position to borrow from someone close to you, consider what affects if any this will have on your relationship.

As you can certainly see, there are more than a few options when considering the consolidation of debt. Your situation will indicate which method, if any, is appropriate for you.