"If you're struggling to pay your bills, spread too thin, or you don't have the necessary cash flow, it may be a good time to consider debt consolidation." There are a variety of ways to go about consolidating your debt.
If you have equity in your home — meaning you owe less than it's worth — a home equity loan or line of credit can be a good way to consolidate your debt.
"Home equity loans and lines of credit generally have lower interest rates than personal, unsecured loans, and most credit cards," Lawler says.
Calculate your total cost under the two scenarios in order to help you determine which route is better for you.
If you don't have home equity, many credit cards have zero percent balance transfer rates — which can mean you get a new credit card, transfer all of your other cards' balances over to it, and pay no interest on the debt for the promotional period.
Make sure to find out the length of the promotional period, the interest rate after that period passes, whether the balance transfers are subject to a balance transfer fee, and whether any other fees apply.
Take a stab at money mismanagement and tap into the financial rewards that can be yours with the right mindset and with the right financial resources in place. Time to open your mind to the endless possibilities of what can be the outcome of your choice to consolidate debt. It is why it is so popular to consolidate unsecured debts.
They will fight tooth and nail to get nuisance fees waived from an account history. They can score hundreds sometimes thousands of dollars off an account.
Negotiation between your creditors and counselors commences. With the right non-profit credit counselors working on your behalf, the creditor harassment that has been plaguing you will end.The next step in the process to consolidate debts is the bundling of all reduced accounts. You will now have only one monthly payment - to the company who has chosen to consolidate unsecured debts. You won't have to think about one thing except getting that singular payment out. Advance your cause when you consolidate unsecured debts. There will be no finance charges as in the days of yesteryear. Another nice thing that occurs when you consolidate unsecured debts is you will be able to pay off the debt and access more cash flow at the same time as the one monthly payment will be less than the amount you sent out in multiple payments before you made the decision to consolidate unsecured debts. "Debt consolidation is essentially taking multiple debts and putting them together so you have just one monthly payment to make," says Daniel Lawler, a Branch Team Leader for Regions Bank.Ideally, that consolidated payment will lower your monthly payment amount and reduce your interest expense.