If you feel like you’re drowning under the weight of your financial burdens, there are options available that don’t involve bankruptcy. Here are four refinancing options that can help you to improve your financial health in 2020.
Student Loan Debt
There are two types of student loans. The first is a federal loan, where you owe money directly to the government. Thankfully, federal loans don’t require refinancing, as repayment is calculated based on one’s income. Talk to your loan manager if you need to adjust your federal loan payment structure.
The second type of student loan is a private loan. These can indeed be refinanced. When you talk to your student loan provider, provide them with proof of income and explain that you need a new payment structure that reflects your financial situation.
Car Debt
The last thing that any auto loan lender wants is to see a borrower default on their loan. The process of repossessing a vehicle is expensive and time-consuming. Talk to your auto loan lender about refinancing your auto debt. Not only will refinancing your car loan help you to save money each month, but it will often have a positive impact on your credit score.
Mortgage Debt
It’s a good idea to sit down with a financial planner if you’re interested in refinancing your mortgage debt. There are many predatory financing companies out there who take advantage of people who are in desperate need of fast cash.
Ideally, you want to ensure you have a monthly rate that’s lower than the national average. If you have an adjustable-rate mortgage, you might be able to refinance for a longer loan term in order to lock in lower monthly payments.
Credit Card Debt
Credit card debt can be absolutely toxic for anyone who’s trying to get their finances back into order. If you owe money to multiple credit card companies, consider getting a single bank loan to pay them all off. Not only will this eliminate the need to deal with multiple creditors, but if you stick to the repayment schedule on your bank loan, you’ll very likely begin to rebuild your damaged credit score.
Financial health and wellness can be difficult to obtain. However, if you take these smart steps towards improving your financial condition, you’ll likely finish 2020 a lot happier than you were when the year first began.
