If you have been reading up on debt consolidation, you may have seen the phrase "consolidate my bills." Consolidating bills can mean consolidating debts, but it does not have to. Consolidating bills can simply mean arranging for automatic billing to a credit card that you pay off every month or arranging for automatic withdrawals from your checking account so you do not have to handle regular monthly bills.
If you want to consolidate your debt to reduce your interest charges or interest rate, then you need to do more than consolidate bills. On the other hand, you can consolidate your bills to streamline your finances and save time. Bills.com has all the resources you need to learn how to consolidate bills. If you want to consolidate debt, the Bills.com Savings Center is the place to do that.
When you look to consolidate debt you have many options, from services like debt management, debt settlement, or credit counseling to debt consolidation loans and mortgage refinancing. Some primary considerations to keep in mind, when shopping for the best way to consolidate bills, is to look at how much you can afford each and the size of the program's monthly payment and also what the program's impact will be on your credit rating.
If you can currently afford to make all your required monthly payments and have equity in your home, then look to consolidate debts with a cash-out loan or refinance. If you can afford to make a minimum monthly payment that is about 2.5% of the total of your debts, then look to credit counseling. Credit counseling will lower your interest rates, likely lower your monthly payments, and speed up the time it takes you to get out debt. If your biggest priority is getting out of debt then make sure to speak with a reputable debt settlement provider. Debt settlement will likely offer you the lowest monthly payment of any debt consolidation option, which can be a great relief when trying to make it from month to month. Because the biggest negative of debt settlement is the impact on your credit rating, if you already have impaired credit, debt settlement becomes even more attractive.
The debt settlement industry is now required to follow a set of new rules issued by the Federal Trade Commission that went into effect in October, 2010. These rules were created to protect the consumer. For instance, anyone now enrolling in a debt settlement program is not required to pay a service fee to the settlement firm until his or her account has been settled. This makes settlement an even more attractive option for the consumer.
No matter want choice you make when deciding how to consolidate debt, let Bills.com point you in the right direction with advice and debt consolidation providers that have been pre-screened to help you consolidate debt.