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Or you resorted to a loan using your car as collateral. your high-interest credit card balances one at a time using “snowball” or “avalanche” tactics. If you end up in the mid-to-high debt range, it might be wise to consult a creditcounselor for advice tailored to your specific situation.
Are you offering collateral? How will this plan affect your credit rating? DO consult with a bankruptcy attorney or creditcounselor. For personal debt, we recommend you talk to a creditcounselor first. Does the payment plan you’re agreeing to have interest built in? What happens if you miss a payment?
Meeting with a creditcounselor should be your initial move if you indicated “yes” to a number of the aforementioned inquiries. Do not use credit consolidation businesses that are marketed on television or online. Department of Justice’s list of accredited creditcounselors.
With this method, you’re essentially taking out a secured loan and using your home as collateral. Home Equity Lines of Credit (HELOCs) Similarly to a home equity loan, a HELOC uses your home as collateral to secure a loan. Pros It allows you to pay off credit card debt within three to five years.
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