Are your finding it difficult to stay current on your payments? Do you wish to obtain low interest rates and reduce your debt burden? If you're planning to get rid of debt quickly, you may consolidate high interest bills into one affordable payment. Consolidation will help you to do away with harassment by creditors and collection agencies. In this article, you'll find an overview of the different ways you can consolidate and pay off bills.
How to consolidate your bills
There are 4 different ways to consolidate multiple debts into a single monthly payment. An overview of each of the ways is given below.
If you take out a balance transfer card at low interest rate (often at 0% rate) and transfer all your balances into the new card, you'll be charged a balance transfer fee. This fee is around 2-4% of the transferred balance. The 0% rate offer usually lasts for 6 months to 1 year. The 0% rate cards often come along with certain rules; for example, you may not be able to use the card for a purchase. On doing so, the 0% rate offer may become void and you may have to pay a high rate of interest on the card balance.
Debt/bill consolidation program
When you enroll in a bill consolidation program, a debt consultant reviews your financial situation and works with your creditors in order to bring down the interest rates on your accounts. This is to ensure that you don't have problems in making your debt payments. The best thing about a consolidation program is that it relieves you from the stress of managing several payments at a time.
Personal debt consolidation loan
Secured debt consolidation loan
Whichever way you choose to consolidate your debts, you need to avoid using the accounts which you're trying to get rid of. This will prevent you from adding on to your debt balance. Especially, if you have credit cards debts, it is better to not punch the cards when you've planned to pay off the debt. You need to maintain a