As well as a financial burden, debt can also be an emotional one – but there are a few key steps you can take to help ease the pressure.The first step is to stop spending money on unnecessary expenses.
This is where the terms can get a little confusing.
One is to consolidate all their credit card payments onto one new credit card – which can be a good idea if the card charges little or no interest for a period of time – or utilize an existing credit card's balance transfer feature (especially if it's offering a special promotion on the transaction).
Home equity loans or home equity lines of credit are another form of consolidation sought by some people, as the interest on this type of loan is deductible for borrowers taxpayers who itemize their deductions.
Combining your debts this way allows you to lower your monthly payment and makes it easier for you to afford your monthly bills.
There are a few different types of loans you can use to consolidate your debt.