Debt consolidation is something that is best handled personally and without and external help. Yes, you read that right. You can ask for advice from an expert but make sure you find a legitimate one. Or else just learn from case studies and free advice on the Internet just like you are doing now.
The main idea behind debt consolidation is simple - you gather up all your scattered payments and bring them in to order. It can be really chaotic if you have to pay multiple interest rates and have to keep track of multiple dates and events. So the smartest thing to do in such a situation is to bring your debt under one heading where you only pay one interest rate to one institution.
When you have to pay different interest rates at different places, it is usually the case that you are ending up paying a very high interest rate overall. So to remedy this situation you can pay off the multiple debts by borrowing funds from one single source. This makes things much simpler for you. You have to choose a source that has a comfortable interest rate and is willing to give you the money. Read through the requirements that such a place has and understand how you can qualify for the loan.
You can take a home equity loan to pay off this debt. You will have to calculate how much you can pay each month and how much is required to pay off your total debt. Then you will come up with how much time you will need to pay off that single loan. This has to be offset against the other loans that you are already paying.
You can also opt for a personal loan to pay off the debt but before you take any step, find out the exact figures involved in the bargain. Calculate your current payment status and see if you stand to lose or gain from a consolidation of your debts.
Another way to consolidate your debt is through debt settlement. If you are paying regularly, your bank might not want to initiate settlement. This only happens when a lot of late fees and interest has piled up and the debtor is deemed unable to pay. Then the bank is usually to talks about debt settlement. Never hesitate to talk to your bank because they are best people to receive the right information from. Do not let scammers misguide you and misinform you.
You can also form a solid financial plan and stick to it very stringently. You can start by paying off the credit card with the lowest balance, this will give you some peace of mind. Then once you have successfully paid off one card, you can move on the next one. This way, you can take them on one by one till they are all gone. You have to stop any habit that got you into the debt. As long as you are not incurring extra debt, you should be fine.
By: Gen Wright