Consolidate Debt

Written by Amy Hall
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Consolidate debt and begin to plan a future free from money stresses. Debt consolidation reduces, and then eventually eliminates, your debt. There are several types of debt consolidation, from home equity lines of credit, home equity loans, personal loans, debt consolidation loans, and personal unsecured lines of credit.

Bankruptcy is another option but one that should be avoided if at all possible, as it remains on your credit record for up to ten years. If you file bankruptcy, you may get to walk away from your current debt, but you will have a great deal of difficulty in the future getting credit or securing loans, or even renting an apartment. It is important that you understand these ramifications before you even consider filing for bankruptcy.

Options That Work

Obviously, if you opt not to go the bankruptcy route, you have a few other valid options that can greatly help reduce your debt and make it easier for you to pay in a timely fashion. Many people seek out the help of credit counseling agencies that can help negotiate with your creditors on your behalf to come up with a payment plan that is acceptable to both parties. If you consolidate debt through an agency, you will be responsible for paying them a lump sum every month, and then they will dole out payments to your creditors as agreed upon.

It is important that you accept help when you are in a financial crisis. Being in debt can be scary and overwhelming, but you don't have to go through it alone. There are many resources available that can help guide you to a better financial future and you can do it knowing you don't have to face it by yourself.

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