Debts Are Naturally Easy to Solve If You Don’t Just Focus On Paying Back!
If you’re on the critical side of the financial spectrum, then you know that you have to pay back — and fast.
And chances are, the more you kill off your loans, the more you see that you’re falling even deeper into trouble.
According to Shantel Matagi, the longer you persist in carrying a credit balance on cards and loans, the more you’ll increase your debts. Those who want to get out of this vicious cycle truly breaks out in terms of doing unconventional things like borrowing more money to cancel out their payables!
While this isn’t exactly a magic trick, here’s a quick intro to how paying back through debt consolidation can save you from a financial haywire.
Manually Move the Balance Out of Danger Zone
Unless your banker is your friend (which is rarely the case), they can’t really help out in solving your debt problems. So, if you’re carrying a debt on a credit card with explosive interest rates, you can cut it all by transferring the balance to a new card with a lower rate. Keep an eye out for cards that offer promotional interest fees, which can be extremely beneficial.
When All Else Fails, Take a P2P Loan
A peer-to-peer loan can probably give you the recovery you need. Once approved, you can immediately utilize the money to pay off your most overdue debts to avoid increasing interest charges. The good thing about P2P loans is they have very low interest rates, so you can save money as you cut back.
Place Your House on the Stand
As a last resort, it’s possible to stake your home to have the leverage and equity you need. Just make sure you’ll have something or somebody to hold onto when things fail. You don’t want to risk foreclosures. Although this is the last resort, don’t use it as a desperate move, but a smart one. Home equities often have long repayment terms to give you time to sort things out better.
Facing a debt head-on is a thing for martyrs. With the right know-how, you can manipulate debts to make it work for you and not the other way around.