How to Restructure Debt. Debt problems affect hundreds of thousands of people. Many companies offer debt restructuring and consolidation services. Debt restructuring and consolidation offers the chance to reduce debt, manage your finances and begin again with more knowledge about money management.
Make a list of all your outstanding debts. Include the amount you owe, the monthly repayments and the interest due. This will give a clear picture of your finances before you begin the restructuring process.
Contact your mortgage lender to renegotiate the terms of your home loan. This will not help to reduce debt, though restructuring the debt will make repayments easier to manage.
Ask a credit union for a loan. It seems strange to ask for more money when you are already in debt, but credit unions usually lend money at lower rates. This means you can use the credit union loan for debt consolidation.
Borrow against an insurance policy. This is a good way to get cash for debt consolidation because you do not have to repay it. If you don't repay the loan your beneficiaries will receive a smaller payout when the policy matures.
Find a credit card company that offers a balance transfer deal. Use this for debt consolidation. Transfer all your credit card debt onto the new credit card. Pay off as much as you can afford each month to reduce debt.
Take out a home equity loan. If you have equity in your home, you can borrow against it on favorable terms. Use the money you get for debt consolidation.
When taking out a loan, avoid those with the longest repayment periods. This may seem appealing, but the longer the repayment period the more interest you will have to repay.