How can I lower my personal loan payments?
Personal loans are a broad category of loans that can include everything from payday loans to money loaned by friends or family members. If you have a loan like this, you know all too well that the payments for this debt can start off as a minor annoyance, then quickly become a money pit. In fact, personal loans have a reputation for being some of the highest interest debt on the market today.
Personal loans such as payday loans and car title loans are offered by smaller companies that tend to prey on people who are desperate. Instead of being upfront about the cost of these loans, they tend to roll over the debt from week to week, charging a fee every time. As these fees add up, it can be next to impossible to get out from under this debt.
Other types of personal loans include the debts that a person owes to their family and friends. While the interest rates on this money usually isn’t that high, owing money to the same people you share a roof with can be difficult for a variety of other reasons.
Fortunately, there is a way to reduce your payments on this debt, even if you don’t have a lot of paperwork showing that you actually owe the money. Debt consolidation can combine all of your personal loans together with your credit cards, student loans, and other debts into a single loan. This loan will have a low interest rate, and a steady monthly payment. Most importantly, you’ll always know exactly how much you owe, and that amount will never go up.
Instead of having fees tacked on to the loan every week, a debt consolidation loan will help you to actually pay off your debts. During the debt counseling process, a financial professional will work with you to find a loan that you can afford. In many cases, this amount is less than what you’re currently paying on your loans, freeing up cash every month that can go to pay other bills or build up your savings.
Getting rid of your personal loans is a crucial step towards getting in control of your money. Talk to a financial counselor about your debt consolidation options.