Consider Bill Consolidation to Consolidate Your Debts and Save
Outside of your monthly expense and necessity purchases, you probably have a slew of bills that come every month for credit cards, loans, and other debt. Your interest rates might be very high or your monthly payment might be beyond your means.
Dealing with multiple bills and due dates each month can be frustrating. Even keeping track of them all can be difficult. When you consolidate your debt, you reduce your paperwork.
Bill consolidation comes in different forms, so make sure that you choose the best bill consolidation for your personal financial situation. Whether you borrow money to consolidate your debt or not, staying debt free requires you to address what caused the debt to grow before. No solution will succeed if the same underlying problem exists.
Bill Consolidation - A Debt Consolidation Loan
Debt consolidation is a popular option that effectively improves some people’s financial problems. It is smart for you to investigate this option, to see if a debt consolidation loan reduces your total costs or lowers your monthly payment, while providing the convenience of conveniently streamlining your bill paying by replacing a number of bills with one monthly payment.
Best rates are available to borrowers with excellent credit. Rates range from 6.5% to over 30%. Terms range from 2-5 years, in most cases. Shop around for rates and fees.
Because a debt consolidation loan is a new credit line, even though you pay off existing debt, you increase the amount of credit you are granted. Be careful. Borrowing alone doesn’t eliminate debt. But, if the new costs associated with your debt consolidation loan are lower than your costs paying off your existing debt, you can save money and get out of debt sooner. What you need to guard against is running up debt again after taking out the debt consolidation loan. If that happens, you will have the monthly loan payment and payments to make on the new debt; you will have made your problems problems worse instead of better.
Pay Off Your Bills: Other Debt Consolidation Options
There is more than one way you can consolidate debt, including different debt consolidation loan options. Common options include:
Cash-out Refinance -You need strong credit and equity in home in order for this to make sense. The cost of taking short-term debt and turning it into long-term debt can make sense if you need the benefit of a lower monthly payment.
Balance Transfer- The offers for 0% interest for 12, 15, or even 21 month require excellent credit. Most offers require a fee of 2%-3% of the amount you transfer. Pay down the principal significantly before the low-interest period ends and rates spike and it can be worthwhile. Making minimum payments during the 0% period is not going to get you out of debt.
If you have good credit, then a debt consolidation loan can be your most effective way to consolidate your bills. If you are struggling with debt, then debt settlement can offer a way to build up funds to pay off your debt. Check out Bills.com free tool, the Debt Navigator, to help you find a personalized bill consolidation solution.
Consolidate Your Bills: Finding the Right Solution
There is no one-sized-debt solution. You did not get into debt overnight and it is going to take time to get out. Don’t rush the crucial decision. Make sure you understand your financial capabilities, what it costs you to live each month and how much you bring in: Do not lock yourself into one tactic or strategy, as before choosing a course of action. Sometimes your first idea may not be the best long-term solution.
A loan to consolidate your bills can be the best choice, for the right person.If you seek a debt consolidation loan and are turned down or if the rate and fees are so high that it is not beneficial, you either need to find a way to solve the problem yourself, or look at debt relief options offered by professional organizations.
Whatever choice you make, start addressing your problem today and the sooner you will solve it and be able to focus on more positive financial goals.