Are your monthly bills piling up so high that you need an oxygen tank to get to the top? If you think you won't be able to pay your bills when they're due, don't worry. There is a way out. If you haven't heard of it yet, debt consolidation is when you get a single loan to pay off all or most of your other debts. Here are some ways that consolidating your debts can help your finances:
- It stops your creditors from bothering you, at least for a while. If you don't pay back your new loan, your debt consolidator will eventually come after you.
- The total of your new loan payments should be less than what you are paying now.
- You should pay less interest than you do now. But don't forget to add any late fees you're already paying.
Get a quote for debt consolidation. This is the first thing you need to do. Both on and off the Internet, you can get these for free. There are a lot of options, such as credit repair companies, debt consolidation companies, banks, and credit unions.
Check out all of your options and get free quotes from more than one. Don't just take the lowest offer; think about the following:
Check out their reputation. Don't even think about a company that only has a website and no physical address or that hasn't joined the BBB or has a bad record with the BBB. If a business is close by, go see them in person. If not, at least call and talk to a representative.
Find a company that will talk to your creditors on your behalf. That way, your loan principal will be lower.
Once you've looked at the quotes from all the institutions, you can choose the one you want to go with based on the above factors. And remember, whatever you did to get into so much debt, stop doing it.
