3 ways to consolidate your debt

Debt can be a real monster, and debt consolidation is a hopeful option for a lot of people. The idea of putting all of your debt in one place, with one monthly payment can be a real relief. But what are your best options for consolidating your debt? Here are a few to consider…

A balance transfer credit card: If you’re looking at this option, you’ll want to first make sure that you find a card that will have a high enough limit to contain all of the debt you want to put together. You may be able to find one with a zero percent introductory rate, which is ideal for paying off debt. If you have $3,600 of debt, and an introductory rate of zero percent for 18 months, you can pay 200 bucks a month for 18 months, and be completely debt free without paying a cent of interest. If this option interests you, here are some pros and cons to consider.

A home equity loan: After the introductory rate on a balance transfer card, the interest rate can be high. The main benefit of a home equity loan, is that the interest rate will be a whole lot lower. Just be careful if you go this route: If you default on the loan, you’re putting your home at risk. If this option sounds better to you, here are some things to think about before you take the plunge.

A personal loan: If you don’t like the idea of risking your home (or any other form of collateral), then a personal loan might be the best option for you. If you’ve got a good credit score, you can probably qualify for the loan, and if you’ve got a great credit score, you’ll probably get an even better interest rate. Plus, you can get the loan through your credit union, so you’ll have a lender that has your back. If this sounds like a good option for you, ask your credit union about any debt consolidation loans they have available.