What to do with your consumer debt?

How many family problems have been caused by these debts that break our heads? There is no turning back, you probably thought. Consumer debts have become common currency in the lives of people. And the worst thing is that those are somewhat justified, since this device or product for which we go into debt, often ends without leaving its box for months. What to do with those consumer debts?

consumer debt

Here we will give you some ideas that can help reduce or eliminate that debt as fastidious:

Sell your investments
Do you have bonds for cash, shares or deposits in any bank? Then make it cash in the possible shortest time. Surely be undermined this capital savings for that dream that you had hoped to achieve, but the pay debts worth the effort. Look at it this way: pay your debts may be your best investment in the long run, that money will stop paying interest and delays will come to be reinvested in your favor.

Mortgaging your home
Do you have a property in your name? For access a loan through it. Just be careful to comply strictly with this new debt since extinguished the right mortgage can run serious risk property on the building. This is a somewhat risky strategy but quite fruitful in terms of liquid capital.

To ask for loans on your retirement account
If you are dependent and have estimable background in your retirement account, you can access to soft loans through it. Yes, well check the conditions offered by your pension fund insurer on the subject, to avoid jeopardizing the fund produced so much of effort at work.

Loan request from family & friends
You may ask, is that you think that we have not thought it before? The reason that many family and friends refuse to lend money is not bad karma or something like that. It is simply because it is difficult to collect the money to a dear person. Even, it can break the emotional relationship between you and your family. Then, do something simple. Make a written contract for the loan. That will help the family member or friend that you apply for the loan to have confidence that will return their money. In addition, any family member or friend to pay much lower interest than any bank.

Try to remove all those consumer debts you have. Just do not go confusing the consumer debt with debt we contract for studies, business or buying property. Such debts are handled differently, because they generate long-term profitability. However, no consumer debt generates profitability. That is why it is necessary to eliminate it.