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    When you have lots of debt, it’s easy to feel like there’s no way out—no light at the end of the tunnel.

    Late on payments and overwhelmed with loans and credit card balances, it can seem like things are spiraling out of control quickly and the only option you have is to run fast or file for bankruptcy.

    Are you feeling hopeless about your financial situation? You have options. Here are four ways you can try to start making a dent in your debt today:

    1.       Refinance your home. A cash-out refinance allows you to borrow against the equity in your home—even if your mortgage isn’t paid off yet. You can then get a quick infusion of cash and use it to pay off student loans, credit card balances, and any other debts you might have. You can also take out a home equity line of credit (or HELOC), which is essentially a loan that you can draw from as needed.
    2.       Consider debt consolidation. Have lots of credit card debt? Apply for a zero-percent interest card, and transfer your balance from high-interest cards over. Just make sure you have a payment plan in place to get those debts paid off before interest kicks in. You can also look into debt consolidation loans, which let you combine all your different debts and pay just a single creditor every month. This cuts down on the chances you’re late on payments, and it could make your monthly payments lower if you get a good interest rate.
    3.       Talk to your creditors. Taking your accounts to collections is a costly and tedious process, and most creditors want to avoid it. If you’re having trouble keeping up with your payments, consider calling your creditors and discussing your situation. They may be able to help you out with either a reduced payment plan or a negotiated payoff amount. 
    4.       Look into alternative savings programs. There are several new apps and programs that can help you save more without impacting your income or finances in a major way. Acorns, for example, lets you round-off your transactions to the nearest dollar, and then put that extra change toward different investment options. Bank of America has a similar program called “Keep the Change,” which lets you round up to the nearest dollar and add that change to your savings account.

    It might seem like debt relief is nowhere in sight, but you have options. Consider talking to your creditors, consolidating your debts, or applying for a cash-out refinance to help. Talk to Embrace Home Loans today to learn more about your options.

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