Some common methods used to consolidate debt are to get a refinance or home equity loan or using a debt consolidation service. If you are heavily in debt and over your head, you may find that you are not able to refinance to cover your debts. There are a lot of people in this situation because of a decline in our economy. Banks are becoming more strict with their lending policies. This eliminates a lot of people from being able to qualify for a loan. Loan consolidation is another alternative but most people who are trying to consolidate aren’t in a position to pay out extra funds to fix a money problem they already have.
There are a few non traditional methods to consolidate your debt that you might have better luck with. Non traditional lenders tend to be a bit more lenient when it comes to qualifying so most people stand a better chance of getting the money they need.
Micro Loans
A micro loan is an excellent solution for debt consolidation. They are usually loans for a smaller amount of money. You can get a micro loan for only the amount of your debt. This gives you the advantage of not taking on any more debt than you already have. They are usually easier to qualify for because that lender isn’t putting a large amount of money at risk by giving you the funds you are requesting. You can often get a micro loan just with a signature on a promissory note. However, if you have the ability to collateralize the loan you might have better luck obtaining it. These loans don’t have to be collateralized with your home which gives you a sense of relief knowing that your home is not at risk. If you have boats, cars or collectibles, you can generally use these items as collateral. This enables you to consolidate your debt for only the amount of the debt while taking on very little risk.
Private Money Lenders
Private money lenders will often offer debt consolidation loans to people who have the ability to pay the loan back. They are relatively easy to obtain if you structure the loan in a way that ensures the lender that you can make the monthly payment. This gives you the benefit of a lower monthly payment as well. If you have had the same job for a good length of time you will find that it is easier to get a loan from a private money lender. Generally, their main concern is that you will continue to make the payments without interruption. These loans often come with higher interest rates due to the amount of risk the lender is taking on, but if you can extend the term of the loan long enough to reduce the monthly payments, you can create a good situation for both you and then lender. 소액결제현금화
Life Insurance Plans
This method can be done quite easily but there is a certain amount of risk involved. Although most times you won’t be required to pay this money back, if you fail to do so, the payment to your family will be reduced. If you are not comfortable with that, then it is a good idea to be sure to pay this type of loan back as soon as possible. The last thing most people want is to leave their loved ones without enough money to pay for a funeral should it become necessary to do so.
Friends and Family
This type of loan could possibly be the hardest to obtain. Especially if you have a history of bad credit. However, if you are good at paying your bills, then there will probably be one or two people who will help you out with this. Be warned that if you are ever unable to make the payments, you could create hostile feelings with someone you care about. Most people never want to find themselves in this position. When borrowing money from a loved one a good rule to abide by is to never, ever borrow more than you can afford to repay. This will help keep you out of hot water. Not to mention that when the loan is paid back and if it was paid back with a bit of interest or a thank you bonus this could create a trust that will last forever.