When it comes to credit card debt, it’s really easy to get overwhelmed and not know which way to turn. One day everything’s fine, you’re using your credit cards, and the next you’ve gotten so far into debt that you can’t get your head above water. 

While it doesn’t happen quite that quickly, credit card debt can easily leave you floundering and having no idea what to do. At Harrison Funding, they want to help you with easy debt consolidation loans and a few tips for consolidating debt on your own. 

Check into Debt Consolidation Loans

Debt consolidation loans are a great way to consolidate your debt so that you have only one bill a month, instead of a bunch of little credit card payments to deal with. These loans are used solely to combine all your debts into one. Make sure that you do your research to determine the best company to apply for a loan with. You want one who is low-interest and has your best interest at heart. 

Credit Card Balance Transfer

It is possible to transfer your higher rate credit cards to a lower rate card so that they are cheaper to pay off. This is dependent on whether the credit card you’re considering has a high enough credit limit. Before you decide to transfer your balances to one credit card, do your research to determine if you’re truly going to be saving money. It’s important to note that not paying on your credit cards, even if it’s just a couple of them can affect your credit score in a negative manner. 

Apply for a Home Equity Loan

If you owe a large amount and want to consolidate your debt, you can check into applying for a home equity loan, if you own your own home that is. It’s possible to borrow against the equity you have built up in your home, and use that loan to pay off your credit card debt. Home equity loans and credit lines often have lower interest rates that credit card companies do. You do need to do your research to determine if you’re getting the best deal by going this route as well. 

Borrow from Your Retirement Fund

Another way to consolidate your debt is to borrow from your retirement fund to pay off your credit card debt. This is a “last resort” method of consolidating your debt and shouldn’t be used unless all else on this list fails. Most retirement plans will let you draw against them, but there are penalties and drawbacks to doing this as well. One example is if you leave your job for any reason, the remaining balance on your loan will be due within 60 days, whether you have the money or not. 

Borrow from Friends and Family

While a viable option, borrowing from friends and family to consolidate your debt really isn’t recommended. If you have to, then make sure you get a payment plan set up, and a contract written and notarized. The last thing you want is to be estranged from your family and friends because you didn’t pay them back. 

Borrow from Your Life Insurance Policy 

While it’s not the most desirable way to consolidate your debt, borrowing from your life insurance policy is an option. For example, if you have to choose between borrowing from your life insurance and filing for bankruptcy, then by all means borrow. In most cases, your life insurance won’t require you to make payments on the loan, but you really need to anyway. If you don’t pay back the loan, then your death benefits will be used to pay back your loan, instead of going to your loved ones to cover costs. Hence, getting a life insurance policy (you can click here to explore some options) in case you do not already have one, could be a smart choice.  

These are just a few of the best ways to consolidate your debt yourself. It’s important to note that not paying, or getting behind on your credit cards can ruin your credit, so do something about it as fast as you’re able.