Some of the studies released by the Urban Institute in July 2014 clearly showed that around 35% of Americans are behind in finances that they have quite some debt in collections. Many people have become overwhelmed by debts, but they do not have to be. This nation comprises of people right in debt, and it does not seem to be working out any better.
As per the data released by Federal Reserve few years back, Americans have non-mortgage and revolving credit to be increasing in December 2014 to around $3.3 trillion and even the non-revolving credit rose to around $2.42 trillion, as properly reported by the USA Today. Whether you are suffering from student loans or just carry balances on credit cards, the debt impact can easily be felt in so many areas of life. In case the debt is coming from various sources, it can make things trickier as you plan to juggle multiple payments every month.
Most people are actually overwhelmed by the idea of debt and they do not have to be living in that way. The easiest way to help alleviate some strain is by consolidating debt from various sources. It is a suitable option for single moms out there who are trying it rather hard to get the options going for the betterment well. They can check out the debt consolidation reviews to get ideas on that.
More on debt consolidation service:
Most of the time, debt consolidation will take debt that you have on your shoulder as single mom from one source, like multiple cards and combining all under one lump sum. It might make it quite easier or paying off debt as you is practically no longer able to deal with multiple payments and covering due dates on monthly scale. There are mainly two ways you can actually consolidate debt. One is the balance transfer and another one is stated as personal loans. Now, the main question is to find the difference between these two options.
- If you are actually looking for ways to consolidate credit card based debt, balance transfer seems to be one great option. It is quite a simple procedure. All you need to do in this regard is request any balance transfer once you are through signing up and then approved for that new card.
- The trick over here is to look for card, which is offering 0% on the said balance transfer for extended span of time or even dealing with reduced APRs on the current balance transfer.
- This can help you to eliminate or even lower the current interest you are planning to pay by just transferring balance from one or more cards where you are actually paying higher interest rates to one with the lower ones. Or you don’t have to deal with it at all.
Will you look for 0% or reduced APR?
Most of these cards, which are offering 0% introductory APR, will have a time frame of 12 to 18 months. If you do not believe that you are getting the debt paid right on time, it might be better to get yourself a card with reduced APR. It means you will not find yourself paying any higher interest rate now when the 0% intro APR comes to an end.
Best cards for consolidating the debts of single moms:
There are so many great cards waiting for you to grab, whenever the matter revolves around balance transfer. Some of these cards are best for looking to consolidate debt well. Make sure to learn about that before the matter gets right out of hands.
- The great choice for the credit card based debt consolidation happens to be Chase Slate. This card will not just offer you with impressive 0% introduction APR for a period of 15 months, but will not charge you with any balance transfer or annual fee. So, if you are able to complete balance transfer within 60 days, the account will remain open. After a span of 60 days, there will be a transfer fee or $3 to $5, which is still not that bad.
- You can try heading for the Citi Simplicity, whenever you are looking for longest ever 0% on APR intro. It will come handy with 18 months of 0% introduction APR on the current balance transfer and some purchases. This card can also benefit no fees for anything and not even for the late fees. There is also a balance transfer fee of around $5 or $3 of total transfer amount, whichever proves to be higher.
- Barclaycard Ring Mastercard is another deal option for those with hefty debt amount for consolidating that they will not be able to pay the same off in a time frame of 18 months or less. Even though, it might not offer 0% intro APR, the card will feature lower ongoing APR of around 8% on transfer and purchases. This card might also pay you around with 1% of cash back on total amount transferred whenever you transfer balance within first 60 days. You can add the same to the no balance transfer fees and you will get amazing card option for the field of debt consolidation.
As there are so many other debt forms available, people can easily look for an option more than balance transfer. Some of the credit card debt might be way too much to get transferred to another card, where the personal loans might easily step right in.
Loan from banks:
Taking loans out from bank is no doubt a complicated and long process, which involves hell lot of paperwork. It will primarily require collateral type for securing loan. Personal loan, on the other hand, will provide another option for people looking to manage debt. These services are here to offer interest rates at competitive solutions and unsecured loans with fixed forms of interest rates.
Be sure to get to the core of the values before heading towards debt consolidation help right now, being single mom on your own.