The Different Ways You Can Consolidate Debt

You’ve recently applied for an apartment and got denied due to your debt. What are you going to do? Fortunately, there are several options that can help you when you’re dealing with debt. 

Know Everything You Owe

When you’re trying to consolidate your debt, you must first know where all of your debt is. One of the best ways to do this is through an online credit check, which, depending on the site, you can get for free or with a small fee. In the credit report, you will probably see something along the lines of what you owe your creditors and what your overall credit score is. Your credit score will reveal whether you have bad, fair, good, or excellent credit.

Talk to Your Bank to Lower Your Fees

One of the smartest decisions you can make when it comes to consolidating your debt is talking with your personal bank to see if you can lower any overdraft fees. This method may or may not work, but when it comes to lowering your overall debt, it never hurts to try every method you can. You may want to include any personal life circumstances you are dealing with to give them an understanding of where you’re coming from as well as what steps you’re taking to rectify your financial situation. Alternatively, look into acquiring a different bank altogether that has lower bank fees. 

Some financial institutions may even allow you to earn some income as you bank with them. You can earn a much higher APY% than what other banks offer. Or, you could use a bank that automatically invests the money you need to use for day-to-day expenses into passive investment streams. Both of these options, while they do not technically consolidate your debt, have the ability to give you a better financial future. 

Look for a Consolidation Loan or Credit Card

If you need to start from the ground up in order to build up reasonable credit, a consolidation loan or credit card are good places to start. Consolidation credit cards and loans often have lower APY percentages and can help to pay off the debt that you have accrued. Alternatively, you could get a credit-builder loan from your local credit union in order to help build up your credit score. These accounts work by having you invest a small amount of money, say $500, towards the end of the loan. Plus, you will have improved your credit score. Consolidation loans, credit cards, and credit-builder loans can all help to rectify your financial situation. 

There are many approaches you can take when it comes to consolidating debt. Debt, while it can feel overwhelming, is a problem that can be resolved with just a bit of foresight and the ability to plan ahead. Which method are you going to use to consolidate your debt?