You have been over your head in debt for quite a while, now is the time to consider applying for a low interest consolidation loan to help you free up some of your income and to help pay your debt down a lot quicker while saving you money. The first avenue most people drowning in debt do is file bankruptcy. They choose this venue to get out of debt because they think they won't qualify for a low interest rate consolidation loan. Many see bankruptcy as a way to eliminate their debt but they don't see the long term consequences of taking such a drastic measure as bankruptcy in an attempt to fix their finances. Before choosing the easy fix of bankruptcy it would serve your interest better to research the other options available to you.
A low interest debt consolidation loan is designed to help people manage their debt, to combine it into one note or loan so they can make one low monthly payment and pay lower interest on their debt while paying off your debt much sooner. If you continue to pay the high minimum monthly payments on the high interest credit cards you would be able to spend a lifetime paying on them and still not being able to see a light at the end of the tunnel of debt. Low interest debt consolidation loans will reduce your payments, and even though you are still paying interest on your debt it is a much lower interest rate than on your credit cards. Also, a higher percentage of each payment you make will have more going toward the principle of your debt and less going toward interest. You may still be paying interest but is saves you money in the long run.
Don't give up on low interest consolidation loans until you have researched them completely. Be thorough in your research, don't let anyone convince you bankruptcy is the right way to go because you will eliminate your debt. The decision to file bankruptcy will remain on your credit for seven to ten years depending which one you qualify for, chapter seven or chapter thirteen. There are also credit counseling agencies that will help educate the debtor in managing their money. Instead take your time to apply and see if you qualify for a low interest consolidation loan to take a positive turn against a negative situation.
Being in the position of requiring a low interest consolidation loan is a very tough situation to have to deal with. Thankfully there are companies that specialize in loaning you the money to pay off your debts. Receiving a low interest debt consolidation loan through these companies is a great way to relieve yourself of the constant stress.
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