What is the best way to consolidate debt?
There are four ways that people usually choose to consolidate debt: balance transfers, debt consolidation loans, a second mortgage loan, and home mortgage refinance. Each way has certain advantages and disadvantages to it that make it appealing for particular individuals. None of these options are best for everyone, so those looking to consolidate debt should decide which advantages are most important to their situation. A balance transfer involves moving balances on high interest credit cards, or other debts, to a new credit card. New credit cards generally offer a grace period for interest, or offer 0% interest on transfers. Someone with a group of small high interest balance credit cards can find it easier to pay down the debt with zero interest. Since these rates are often only introductory, some choose to transfer balances to a new card once again when the rates begin to rise.
