debtDo you want to learn how to consolidate debt? There are many options available for doing so. Consolidating your debt can not only make taking care of your monthly payments easier, it can save you hundreds, or even thousands of dollars over the long run. Furthermore, it’s not as difficult to do as you may think, and almost always well worth the effort.

First of all, you need to decide if debt consolidation is right for you. In general, consolidating is a  good idea if your credit cards are maxed out, if your car payment is more than two months overdue, or if you’ve bounced more than one check in a month.

The best and easiest way to consolidate debt is to get a loan. This loan will pay off all of your existing debt, usually at a steeply negotiated discount. After the debt is paid, you’ll pay back the loan, swapping your many different high interest payments for one low interest one.  You can get a debt consolidation loan through your bank, through a debt specialist company, or through your mortgage company (this one will use your home as collateral for the loan).

The next best option is to hire a debt management company.  This company will handle all of your debt accounts and payments, and will negotiate lower interest rates and pay-off amounts with your creditors.  They’ll charge a small fee to do this.  The benefit is that you don’t have to remember the due dates of all of your bills, and you’ll often end up paying back your debt at a far lesser amount than you would if you paid everything off individually as you are now.  You’ll also be debt-free a lot quicker than you would otherwise be.

If you’re struggling with many high interest monthly bill payments it can be of great benefit to you to consolidate debt.  It will make your life a lot easier, take away a lot of stress, and put you back in control of your finances.

This is the first installment in our credit & debt series. Be sure to check back for updates…

Filed under: Debt & Credit

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