Go in and try to make a deal! What do you have to lose by trying? For example, you might be able to get 25–50% of your credit card debt wiped out, have your credit card account closed, and instead go on a payment plan.
IMPORTANT: Make sure you tell your creditors that if you re-negotiate for lower payments, they can't report you as "late" to credit reference agencies. Then it won't change your credit score.
Take your time. Don't be in a hurry to settle down. Use the threat of going bankrupt as a stick to beat them with.
KEEP WRITTEN RECORDS. Write everything down. Phone calls don't have any legal weight.
With consolidation loans, you can reduce your debt. You can use them to pay for things like houses, cars, and medical bills, as well as things you bought. Most of the time, these loans are used to pay off credit card debt, which can grow quickly due to high interest rates and late fees.
To get a debt consolidation loan, you will need to find a good deal at a bank, credit union, or other financial institution. There are many finance companies with different programmes, so shopping around will only help you get the best loan.
Low fees are part of debt consolidation loans. This is a very big plus. This lets you, for example, pay off your credit card debt slowly and stop more interest from adding up. It's also important to avoid penalties and late payment fees, which will only add to your debt. It is important to remember, though, that you will still have to pay back the loan to the bank, so taking on even more debt is not a good idea.
Eliminate multiple payments. Debt consolidation loans are not only the easiest way to pay off debt, but they also have lower interest rates. Instead of dealing with several creditors, you can just make one monthly loan payment, which will cover all of your bills.
Most people who use debt consolidation loans find this to be very helpful because it makes it easier for them to handle their money. You'll also know exactly how much money you'll have to pay at the end of the month, which lets you spend wisely and save enough money for bills.
Keep going with the plan. Debt consolidation loans can help, but they should only be seen as a short- or medium-term fix. Debt will still be a big part of your finances until you pay off all of the money.
This means that if you get the loan, you will have to change the way you spend your money. If you don't, you could end up in even worse financial trouble than before.
WARNING: Many people who work with debt consolidation companies get a false sense of security that makes them want to start spending again. With your help, debt consolidation services can do a lot for your finances.
