Debt consolidation isn’t that hard to get into and a lot of people do get into it when they have too many bills they have to pay or a mountain of debt. Debt consolidation can help make things go much more smoothly for you each month. Keep reading to find out if debt consolidation is for you.
Are the counselors at your debt consolidation company fully certified? Do these company’s have all of the proper certifications? Do they have any certifications? This can help you sort out the good companies from the bad.
Before you get your debts consolidated, see what your credit report looks like. The first step to fix your debt is to know where it came from. Figure out how much debt you have and who you owe money to. You won’t know how to restructure finances if you do not know this information.
Do you possess life insurance? You might want to consider cashing in the policy so that you could pay your debts. Talk to your agent about what they can offer you. You can sometimes borrow a part of what you invested in your policy to pay your debt.
When looking to consolidate your debt, do not assume that non-profit companies are trustworthy or that you won’t be charged much by them. Some imposters steal the term and make deals that are bad for the consumer. Call your local Better Business Bureau to check out the company.
It’s not uncommon for most people to learn that simply making a phone call to their creditors to get payments lowered actually works. They want you to pay them back, so they will work with you. If you have a credit card and cannot afford the monthly payment, call the credit card company and explain your situation. The credit card company may be willing to lower your minimum payment; however, they will not let you charge using the card.
Check out the qualifications for each of the company’s counselors that you are looking into. Is there any organization that has certified these counselors? Is your counselor legitimized by working for a reputable company? When you know this, you will know whether or not you should choose the company in question.
If you’re a homeowner, consider refinancing your house and using the cash to pay off your debt. Right now, mortgage rates are extremely low; therefore, it’s a great time to use this strategy to pay off your debts. Also, you may find mortgage rates to be lower.
Bankruptcy might be an option for you. Any bankruptcy, whether Chapter 13 or 7, will leave a lasting ding on your credit reports. Although you’ll receive a bad mark, bankruptcy may benefit you if you cannot pay your debt off. If you cannot make payments, your credit is probably not the greatest and a bankruptcy won’t make it much worse. Filing for bankruptcy will allow you to start reducing your debt and get on the path to financial recovery.
See if the folks who work at the debt consolidation company hold counselor certifications. You’ll find companies that you can trust through the NFCC – the National Foundation for Credit Counselors. This can help you feel more comfortable as you’ll be dealing with a good company.
Don’t let bills piling up every month bother you. Debt consolidation can help you pay them back in a simpler manner. Use these tips to help you get your debt under control.
You can borrow money from a friend or family member in order to consolidate your debts. Before you do so, however, carefully consider the impact that such a loan could have on your friendship, particularly if you run into trouble paying it back. This is truly a last chance way to pay off your debts, so only do it if you are committed to paying the money back.
