If you're facing problems to manage your bills properly, then bill consolidation may be your right choice. Attending a no-obligation free counseling session, with a debt relief company, will enable you to understand whether you should consolidate bills or look for some other options.
Bill consolidation program
This is similar to a debt consolidation program, where you get help from a consolidation company.
Bill consolidation loan
You take out a loan from a financial institution and repay your current bills/debts with that amount. Thus, you replace your existing bills with a single consolidation loan, which you repay through single monthly payments.
Balance transfer method:
This is a DIY option wherein, with your creditors' approval, you transfer your high-interest debts to a low-interest card if there’s available credit limit. Thus, you can consolidate bills to repay them with ease.
|Consolidation Program||Consolidation Loan||Balance Transfer Method|
|Professional fees||Yes||No (May need to give upfront fee)||No|
|Single monthly payment||Yes||Yes||Yes|
|Choose when you:||
Bill consolidation laws to protect customers
The laws, protecting bill consolidation loans, focus on protecting the regulation of financial institutions, which provide such loans:
- Nationally chartered banks along with few state banks need to be insured by the Federal Deposit Insurance Corporation. The FDIC is a government corporation created in 1933 which protects consumers from problems created by bank failures in 1929.
- The Fair Lending Act and the Truth Lending Act protect consumers by ensuring that all the terms and conditions of bill consolidation loans are provided to customers when they take out the loans.
- The law of the state, where the customer resides, governs the terms of the loan. The amount of interest a financial institution can charge is also governed by the state.
How can bill consolidation help you?
- Reduction in interest rate
- Lower monthly payments
- Stress gets reduced
- Single monthly payment
- Don't have to deal with several creditors
- Do not have to manage multiple bills
- Positive remark on credit report
- Credit score may improve
Check out benefits of consolidation in details.
Is there any other way to repay debt?
Apart from opting for bill consolidation, you can also think of settling your debts if your total outstanding debt is too high. Or, settlement can also help you if you cannot repay the debts in full and want to get rid of your debts fast.