How to Avoid asking Your Family for a Bailout Loan
When you’re struggling with your debt, you know it can impossible to pay your bills every month. If you have been trying to get everything paid for a while, then you’ve probably considered every possible way to get enough money to get out of debt. One of those ways, is to borrow what you need from family and friends.
While your loved ones will probably charge you less interest than a credit card company, no one wants to be in the position where they owe money to people they have to see on a regular basis. Putting money between friends or family means that every visit can turn into a question of when you’ll be paying your loved ones back. Even after a loan is paid off, well-intentioned family and friends will think that the fact they once offered you money gives them the right to pry into your finances for years to come.
If you’re in a position where no one will loan you money or rewrite your existing loans to make them affordable, though, what else can you do?
One answer is to consider a debt consolidation loan. These loans pay off all of your existing debt, including credit cards and student loans. In return, you get one loan with a lower interest rate and a lower monthly payment. Depending on the type of debt consolidation loan that you choose, you may be able to extend your payment term and cut your monthly payment in half.
If you can’t make your minimum debt payments each month, then a debt consolidation loan is just what you need to get your debt back down to a level you can afford. If you just need some temporary help, then use one of these loans to free up some cash and take care of your other bills. After you’re through the rough patch or your income improves, you can make extra payments on the loan to get it paid off as fast as possible.
p data-sp-element=”content”>A debt consolidation loan can allow you to get in control of your money without involving or begging favors from your family and friends. You can handle your financial affairs on your own, and no one has to know that you are having financial difficulties.