Bill Consolidation

How Bill Consolidation Works (How, Why, When)

How: Bill Consolidation combines a number of your bills and personal debts into one payment. You can consolidate debt,  credit card, medical, and household expense bills into one payment. You can either combine the amounts into a low-interest loan, such as a cash-out or home equity mortgage or take out a short-term bill consolidation personal loan. If you can’t qualify for a loan, then look for alternative bill consolidation such as a debt settlement, or a debt management program.

When: Bill Consolidation is appropriate in many different situations. For example, if your credit cards have high-interest rates and you can qualify for a low-interest rate consolidation loan, then you can save money. If you are having trouble making monthly payments, then a long-term cash-out refinance, or home equity mortgage can help you consolidate debt.

Why: One primary reason to consolidate your bills is to simplify your life. Instead of paying lots of bills, and risking late fee penalties, you only have to worry about one monthly payment. Another reason to consolidate your bills is to benefit from a lower interest rate. If your credit score improved, you may qualify for a low-interest bill consolidation loan and save money. A third reason is to reduce your monthly payment through a long-term mortgage or a debt settlement program for those with financial hardship.