If you're in debt burden and can't see a way out, try getting help so as to dig your way out of debt safely and comfortably. If you have a stable income source, you may consider consolidating your debts and rolling all your bills into a single monthly payment. Check out how you can consolidate your bills and lead a peaceful life.
Should I consolidate my debts?
Here’s a checklist:
- Multiple bills are becoming unmanageable
- Forgetting the due dates of payments
- Creditors are calling you for payments
- You're using one card to repay another
4 Ways to consolidate credit cards and other bills
If you’ve made up your mind to consolidate your debts but thinking “How do I consolidate my debts?”, then glance through the following 4 points to know your options.
Debt consolidation program
This can be your way to financial freedom when you need complete professional guidance to repay your debts. After you enroll in a program, you'll be able to merge your multiple bills (credit cards, utility bills, payday loans, store cards, etc.) into one monthly payment at a lower interest rate.
Bill consolidation loan
A consolidation loan can be your preferred option to enjoy a life free of debt. In this strategy, you take out a relatively low-interest personal loan from a financial institution to consolidate personal debt and pay back your creditors. Then, make one monthly payment to pay off your consolidation loan.
DIY debt consolidation
Instead of getting help from a consolidation company, if you’re trying to find out "How do I consolidate my debts myself?", then there’s an option. You can negotiate with your creditors for an alternative repayment plan at a comparatively lower rate of interest so that it’s easier for you to pay off your existing dues.
Balance transfer method
If credit card debt is what bothers you, then balance transfer can be your preferred get out of debt option. This is where you transfer your high-interest debts to a low-interest card with sufficient credit limit.
Thus, you consolidate and repay multiple credit card bills with one easy payment every month.
Benefits of consolidating debts to pay them off
Consolidating bills for a debt-free life offers you the following benefits irrespective of which option you choose:
- Single payment every month
- Interest rates on debts are reduced
- Credit score may improve after paying back dues
- Pay off debt with ease and enjoy a stress-free life
Can a calculator help you consolidate your debts?
can save you
Consolidate debt companies - Tips to choose a reliable one
6 Parameters to choose a reliable consolidation company:
Can you consolidate debt with bad credit?
Honestly speaking, it’s a bit difficult to take out consolidate debt loans with bad credit. The creditors/lenders will evaluate the following 2 things to decide whether or not to grant your loan request.
Debt to available credit
In such a situation, you can opt for professional help by going for a counseling session with a consolidation company. If you have a stable monthly income, you can qualify for a consolidation program and repay your existing dues.
Consolidate debt - Pros and cons
- Lower interest rate
- One consolidated and relatively lower monthly payment on your multiple credit accounts
- May help improve your credit score
- You may end up spending more if you overspend
- May be difficult to obtain a personal loan for consolidation if credit score isn’t good
- May not be able to consolidate student loans