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Information and Tips to Consolidate all Bills

Can we consolidate all of our bills into one lower payment over a certain amount of time to pay off?

Can we consolidate all of our bills, house payment and car payments into one lower payment over a certain amount of time to pay off?

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Bill's Answer
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Bills.com | Find Learn Save

Thank you for your question. You cannot combine different types of loans into a single loan. I am guessing what you are referring to is most likely, a debt consolidation program.

What you can do is to refinance your mortgage and use the cash-out proceeds to pay-off your other debts and end up with one larger mortgage (which techically is a form of debt consolidation).

To get a quote to consolidate all of your bills with a refinance loan, follow this link: Mortgage Refinance Quote

Debt consolidation services, however, only work for unsecured debts. Now, the difference between secured and unsecured debts is that secured debts have a collateral property attached to them. For example, your home is the collateral for your mortgage loan and your car is the collateral for your auto loan. Examples of unsecured debts are credit cards and personal loans.

As you seem to be inquiring about debt consolidation, let me give you some information about some of your main options.

Debt consolidation comes in many forms, so it is important that you reflect on what your needs and concerns and financial situation are before signing up for an online debt consolidation program. The four primary concerns for most consumers are: i) monthly payment, ii) time to debt freedom, iii) total cost, and iv) the credit rating impact of the consolidation program. Be sure to evaluate each program, relative to your prioritization of these factors.

Debt Consolidation Loan

Many people think first of a debt consolidation loan when seeking online debt consolidation. This option typically means a second home loan (or home equity line of credit) or refinancing your primary mortgage. In a debt consolidation loan, you exchange one loan for another. The most frequent form is taking out a mortgage loan, which carries a lower interest rate and is tax deductible, to pay off high interest rate credit card debt. It is important to be aware that shifting unsecured debt to secured debt can create a volatile situation, if there is ever a chance that you cannot afford the new mortgage payment you are now putting yourself at risk of foreclosure! In the case of a debt consolidation loan, most mortgages are 30 year loan, which means that the total cost and the time to debt freedom could be very high? but the monthly payment will be lower than other options and there is no credit rating impact.

Credit Counseling

Credit counseling, or signing up for a debt management plan, is a very common form of online debt consolidation. There are many companies offering online credit counseling, which is essentially a way to make one payment directly to the credit counseling agency, which then distributes that payment to your creditors. Most times, a credit counseling agency will be able to lower your monthly payments by getting interest rate concessions from your lenders or creditors. It is important to understand that in a credit counseling program, you are still repaying 100% of your debts ? but with lower monthly payments. On average, most online credit counseling programs take around five years. While most credit counseling programs do not impact your FICO score, being enrolled in a credit counseling debt management plan DOES show up on your credit report? and, unfortunately, many lenders look at enrollment in credit counseling akin to filing for Chapter 13 Bankruptcy ? or using a third party to re-organize your debts.

Debt Settlement

Debt settlement, also called debt negotiation, is a form of online debt consolidation that cuts your total debt, sometimes over 50%, with lower monthly payments. Debt settlement programs typically run around three years. It is important to keep in mind, however, that during the life of your debt settlement program, you are NOT paying your creditors. This means that a debt settlement solution of online debt consolidation will negatively impact your credit rating. Your credit rating will not be good, at a minimum, for the term of your debt settlement program. However, debt settlement is usually the fastest and cheapest way to debt freedom, with a low monthly payment, while avoiding Chapter 7 Bankruptcy. The trade-off here is a negative credit rating versus saving money.

Net-net:

While there are many forms of online debt consolidation, many people with good to perfect credit who own homes should look into debt consolidation loans, while consumers with high credit card debt and poor credit may want to explore debt settlement or debt negotiation. However, each consumer is different, so find the online debt consolidation option that fits for you.

Bills.com makes it easy for you to apply, by following this link: Debt Help Savings Quote.

I hope the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.bills.com

Get Debt Help!
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4 Comments

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  • BA
    Dec, 2008
    Bill
    I am sure you can if you have not done so before. You will have to consolidate federal and private student loans separately.
    0 Votes

  • FS
    Dec, 2008
    felipe
    can i consolidated my student loans?
    0 Votes

  • BA
    Sep, 2008
    Bill
    Please refer to our website at http://www.bills.com/consolidate-debt/ for tips and ideas on how to consolidate debt.
    0 Votes

  • HB
    Sep, 2008
    Hugo
    I need to put all my bills together, or a credit card I can put everything into..
    0 Votes

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