Most people in debt share a common goal: to pay it off quickly and save as much money as possible. No one wants to spend more than they have to. Fortunately, there are many different ways to get out of debt faster and for less money. Consider six of the cheapest ways to get out of debt and find the solution that is right for you.
Debt consolidation is a common method of refinancing that involves paying off high-interest debt with a new lower-interest loan.
A personal loan is money borrowed from a bank, credit union, family member, or online lender. Many different types of loans fall into this category. Most have a fixed interest rate that allows borrowers to make predictable payments to repay the debt.
Not having access to cash when you need it is stressful and inconvenient. A cash advance is a short-term cash loan made against an existing line of credit. An advance allows you to use your credit card to get cash from an ATM or bank. Just like any credit used on a credit card, a cash advance needs to be paid back and will accrue interest.
Most of us have been in a situation where we’ve needed to borrow money. For some, borrowing comes in the form of student loans for college expenses, a mortgage for a new home, or a personal line of credit to start a new business. For others, borrowing has allowed them to make ends meet when they were in a financial bind.
If you need to consolidate and pay off existing debt, but have concerns about your credit score and finances, you may be considering bad credit loans. Using a bad credit loan to consolidate existing debt may seem like a good idea, but it’s not your only option. It’s important to understand the risks and consider all alternatives before making a decision.
An Installment loan is any loan that is paid back in regular increments over a predetermined repayment period. Most installment loans are paid back monthly with interest. Some have additional fees that cover administrative costs or penalties.
A personal line of credit is very similar to a credit card. A lender will check your credit score, verify your income and issue you a credit line for a certain amount. With a line of credit, you can access the funds when you need them as long as you have an available balance.
A payday loan is a short-term loan available to you based on how much you earn each pay period. Lenders require proof of income, usually a recent paystub, to qualify for the loan. The lender then grants a loan for that amount along with interest and/or a lender’s fee.
Consumer credit, also known as consumer debt, is any type of personal loan that is used by a consumer to pay for goods and services. If you need to buy a car, purchase a home, attend school, make a home improvement, or meet some other large expense you may consider taking on consumer credit debt.