Are You Trying to Get a Cheaper Consolidation Loan?

In these hard economic times, debt has become very common and as a result, hundreds of companies offer consolidation services have sprung up. Normally a consolidation loan is secured by collateral such as your home or other property that is of similar value to the loan. Consolidation loans are a great way to recover from bad debts. They involve taking one large loan to repay the smaller ones. If you are in debt and seeking to acquire a cheap consolidation loan, the following are good ways to spot a good and reputable credit card consolidation company.

You need to first check out the company history. Good consolidation companies have been in the business for long periods. You would not want to put your money into a company that has been in the industry for a few months. A company with experience is important. Gather information about the company. Try to get reviews from people whom have been assisted by the same company. It is a fact that if someone was assisted by a company to try and did not like it they are talking about it. They may provide you with details of the problems they might have experienced and help you to avoid similar ones.

If a company is well known, then you are at a better chance of getting your consolidation repaired than at a company that you have never heard of. You can find out more about a company by reading the news and finding information that may help you make a decision concerning the company. Matters concerning fraud, corruption, company liquidation and so on are hot news for the media and you may save yourself from falling into the pit of such companies. You can also check out the company's financial records, if the company's stock is dipping, you would not want to trust such a company to assist in the repair of your debts.

By researching and comparing the best consolidation companies, you will be able to settle on a company that is able to meet your particular financial situation and save you from fraudsters.

How Can I Find the Best Debt Consolidation Loan?

You may have been hit by credit hassles and left with no option. May be those bills are traumatizing and you find that you cannot get away with this. You still have an option to rely on. Debt consolidation could be the way out for you. But how do you end up finding the best debt consolidation loan? And how much help will it be to your situation?

A debt consolidation will allow you to pay all the Debts that are outstanding. In a composition, it will be safe and easy to pay the interests than paying them separately. Several places are available from where you are able to obtain such kind of loans.

Being a customer from your local bank, you still stand a chance to approach the bank and seek a debt consolidation from them. The relationship that you retain with them is very important and they have every reason to listen to you and grant you a proposal that will solve the credit problems that you have. However, you should bear in mind that it is very important to maintain a good relationship since, if you would like things to work out for you and you have never had a good relationship with them, they may turn the offer down. You have to show a great improvement on your credit status if you want to reap the best from the bank.

An alternative option is searching for the same companies online. Different companies are out to offer such services to individuals who are experiencing a problem like this one. Such companies are all over and you can conduct them whenever you want a Debt consolidation service.

It is quite important to bear in mind that the issue is not just getting a company that will offer such kind of a service. It is highly recommended that if you are looking for such a company, all will go well if only you involve yourself in an intensive shopping. Achieving a lot of information on such companies will help you to save a lot of money in the future.

How Do You Know the Best Debt Consolidation Loan Lender?

The financial crunch has dealt a big blow to many people and for those who are having problems paying off their debts, the blow has been several times harder. If you are in a situation where your debts have become unmanageable, do not despair. You can offload that burden by getting a debt consolidation loan from one of the thousands of lenders offering the service. Looking for the right kind of lender might seem a bit hard to most people. However, if you put yourself to it, you will find that it is not so difficult after all and the end result is worth the effort any way.

The world today seems to be filled with more cons than genuine people. This is the reason why you should be very cautious when looking for a lender. You do not want to fall into the hands of a swindler who will ultimately make your financial situation much worse that it was before you went to him. Before you choose a lender, make sure that you have done detailed research to verify his credibility. A good lender should have documents proving his legitimacy. Many of the best lenders have a meticulous track record and their reputation is beyond reproof.

The best lender is the one who offers loans at affordable rates. Good lenders are usually very open about their rates and they will let you know about all the money that you will be required to pay in case you decide to borrow from them. A good lender will not hesitate to answer any question that you may have regarding the loan that you want to borrow. He will not in any way take advantage of your desperate situation to get more money from you than he should.

If you are planning to improve your financial situation by clearing all your debts, it would a good idea to contact a debt consolidation loan lender. There is no point in sinking deeper into the abyss of debts when you can make them disappear with a loan from one of the best lenders around.

Online Debt Consolidation Saves Time

People are getting into more and more debt due to personal loans and credit card charges. It has become difficult for many consumers to make payments and meet their everyday financial needs. Debt consolidation not only leaves a debtor's credit unharmed but also wipes out all debts within 3-5 years.

Online debt consolidation companies help people pay off debts through consolidation loans. The loan pays off all the debt, and the debtor just has to make one monthly payment instead of multiple payments.

Mostly the interest rate charged for the loan is lower than the monthly credit card payments. Before going for such loans, it is better to get such quotes, which are available both online and offline. Personally meeting the representatives of the companies is a bit tedious,time consuming and energy wasting.

Moreover, if the representative is busy you may not get the quote for several days. By personally meeting the representative you spend lots of time seeking quotes of consolidating debt. Getting such quotes through the Internet is really very easy. The debtor just has to visit the web site of the company providing debt consolidation services and fill out the online form. Just with a few clicks of the mouse, you can
fill out the form and submit it for approval.

This procedure just takes a few minutes and just within another few minutes, you can receive your debt consolidation quote. Everything is done in just a few minutes and with a few clicks of the mouse.

The Ways and Means to Consolidate Debt

Debt is an unpleasant problem for all involved. A way to make it easier that is growing in popularity is debt consolidation. Millions have used this method to smooth their way to being debt-free, and start their financial lives again on a more level field.

A Restored Credit Rating

Consolidation loans let a beleaguered debtor take a breath while paying off bills that may have become too much to otherwise handle. These bills are collected and paid for with the loan, meaning only one account for the borrower to pay. Under this plan, accounting for any debt is much simpler.

An Individual Plan

When the number of creditors is reduced to one, the installment payments will be lower. Not only are there no longer multiple finance fees to pay, but there is no accumulation from several interest payments to worry about. Often, people face the problem of paying into the interest and fees, rather than into lowering the actual debt. Debt consolidation solves this problem.

Credit card companies especially tend to charge interest in such a way that it increases greatly month by month. Debt consolidation loans are constructed the opposite way, so they can be paid off in the most efficient manner possible.

The Advantages of Debt Consolidation

The money from the consolidation loan is used to pay for a number of other debts at once, clearing them from the borrower's credit record. The same amount of money is due, but now only to one creditor rather than several. As soon as the old debts are paid by the loan, the borrower's credit record begins to recover. Debt consolidation loans have saved thousands, if not millions, from bankruptcy and other terrible financial situations.

Don't Forget:

No matter how many debts are covered by the consolidation loan, after the loan is taken there will be only one account. There will be no more fear of letting one bill slip through the cracks, and going unpaid - and no fear of creditors calling with threats of repossession.

There will be a lower interest rate charged under the debt consolidation loan, not to mention, no finance fees. The lack of cumulative fees and interest means even more money saved.

If there has to be a choice, pay credit card balances first with the consolidation loan. Credit cards are notorious for high interest rates. Combining the credit card bills under the debt consolidation loan will greatly decrease the amount of money owed in the long run.

There is no reduction of debt. The amount of money owed to various creditors before the consolidation loan will be owed afterward. Only the number of accounts to pay will be reduced.

Debt consolidation is a method of last resort before the final step of bankruptcy and an utterly ruined credit rating. The inability or unwillingness to pay back a consolidation loan can have severe consequences.

Those who don't know where to find a good consolidation plan can ask around local banks and financial institutions. Even if they don't provide debt consolidation loans, they will be able to point the way to those who do provide them.

Watch out for scams and con artists. The debt consolidation boom has created a lot of untrustworthy means to steal money from those who can least afford to lose it.

How Much Does it Cost? A Debt Consolidation Loan

Debt consolidation can be the first step towards managing debts. But before you organize those multiple debts, you need to know how much the loans will cost you. You have the right of choice when it comes to how you want to pay the loan. However, some companies have specific terms and conditions that must be followed. Since we have different type of loans, interest rates also vary from loan to loan.

After choosing a loan that you want, you can then go a head and strike a deal with a lender. Depending with the level of your income, the lender will give you an appropriate fine print after you have agreed to their rules, and of course after you are qualified. Your situation will be looked into, matched with a corresponding loan, and then money is credited to your account.

Individuals who flaunt impressive credit rating usually stand better chances of qualifying. But the ball, again, stops at your income level. If your job ended suddenly due to retrenchment or disability, it is a clear sign that you might not have regular income in the near future. The approval is what is important and because collateral is not needed in this case, you are at liberty to select a loan that you can pay comfortably.

Payment is as important as the loan itself. You have to be weary of companies which charge exorbitant interest rates. So what you'll pay depends on various factors that you it would depend on type of loan you've signed up for. If you have huge income and can afford to make regular payment without much ado, then you can decide to pay more so that you finish payment quickly. It cannot be an exiting experience to take let's say six years for a loan that you can clear within less than those years. The choice is yours. But it's smart to borrow what's enough.

Try as much as possible to reduce your payment rates as what you are looking for is a solution to your loan. If you have the move, then get payments rolling.

How is the Way That a Debt Consolidation Program Works?

What is Debt Consolidation?

Debt consolidation is the process of taking out a single loan to cover multiple smaller loans that have been taken out. It allows many small loans to be lessened to one single lump sum in the hopes of reducing stress, having a lower interest rate attached, and generally, making the debt more simple to handle. These types of programs allow those that are faced with debt to take control of their lives by making the money being paid for loans more manageable; but one of the main purposes of consolidation is to make the rate of interest lower on the money being paid.

How is the way debt consolidation works?

Debt consolidation is rather simple. When an individual, family, or business gets into trouble financially by having a large number of loans out, many times, that individual, family, or business wants to get out of the debt as soon as possible. This can be done through a variety of ways, but the consolidation of your financial obligations often proves to be the most desirable. The individual, family, or business goes to a debt consolidation company, or similar financial institution such as a bank and negotiates placing all of the debt into one lump sum. Though there are certain qualifications to be met, getting your money owing problems consolidated is often the best route.

Once the terms have been negotiated, the financial institution and the individual, family, or business puts all of their debt into a single account balance. This account often has a lower interest rate which makes the cost of the total repayments much less substantial and easier to handle. One lump sum rather than many separate bills causes repayment to not only be easier financially, but also much easier on stress levels and general emotions of the individual or family. However, if these larger payments are not met, then the individual, family, or business's credit score can potentially plummet.

Businesses do not take out debt consolidation as often because it damages credibility of the business. If the business is open shared, it can cause the price of company shares to plummet.

How Do I Find a Debt Consolidation Loan Lender That is Cheaper?

Debt consolidation companies are there to solve the financial problems to the individuals who are in tricky situations with their finances and struggling with the payments to more than one lender. These lender institutions reduce individual's debts to one manageable monthly payment with low interest rates among others. Before engaging in this kind of loan, you have to look at the relevant matters since it may not be right for you or available for you.

Debt Consolidation Company will pay all your debt that exist, and hence transfer the amount owed into one loan. This kind of loan is advantageous since one may choose to spread the costs over a longer period of time or reduce the monthly outgoings and above all pay lower interest rates.

These loans may greatly help the individuals who are careful concerning their spending in that, the monthly payments may be reduced. This is because when you spread out the debt, you are likely to reduce the monthly repayments to a level that is manageable for you. It also improves an individual's credit rating in that, one is in a position to pay off the loan and accrue no debt further which is an advantage especially when it comes to credit rating. It may also help in reducing the interest that an individual is likely to pay in that, if an individual's debts are with credit cards which have high interest rates, he will just pay back generally with less interest loan.

In order for one to see if he or she is eligible for this kind of loan, a lender will check on your credit risk depending on how much debt you have. At times a lender may offer an individual a secured loan if he or she has large debts or bad credit history. By doing this, you will be forced to use your property as a security to the loan thus, reducing the lender's risk. You must be confident that you will be in a position to cope with the repayment terms since if you do not, your house may be at a risk.

Do Debt Consolidation Lenders Really Lend Without Collateral?

Collateral is what a borrowers pledges just in case he or she fails to refund the money loaned after the expiration of the repayment period; whereby, the collateral possibly will be an asset that has an approximate value similar to the loan. The lender seizes the assets in case of failure to the repayment of the loan. Loans that do not require collateral referred to as unsecured loans while the others referred to as secured loans. Secured loans to put the borrower in so much pressure therefore have discouraged people or organizations from getting loans for the reason that of the risk involved. Firms that lend money commenced offering unsecured loans to increase the number of borrowers they get.

Greater part of the people or organization who are in exceptionally huge amount outstanding that they owe other people or companies do not have assets that can act as collateral. The fear of these individuals is they cannot receive any other loans to reduce the pressure on their debts. Fortunately, most of the debt consolidating firms does not require collateral for to be approving a loan meaning they offer unsecured loans. The lenders who offer the loan rely on your word that you shall repay the amount. Since, the risks for the lenders organization are high for the reason that individuals could sometimes escape payment. Therefore, the lenders cushion themselves by charging higher interest rates than those that have collateral.

Unsecured debt consolidation is suitable to debtors in view of the fact that greater part of them are usually in large debts. Given that, there is no collateral therefore, amount lent can be as much as what the debt is amounting to with no limit. They also lend a hand to individuals or companies whom almost filing into bankruptcy as well as have no collateral. The only way the unsecured loans can proof your probability to repay back the loan amount is by checking on the following requirements. These are the availability of continuous stable income for example employment; the borrower should also have a credit history, as well as a low debt to income ration.

How Do I Find a Debt Consolidation Loan Lender That I Can Trust?

There are numerous debt consolidation companies which have come-up to the extent that knowing where to look, which one to trust, how to go about it is a bit puzzling in addition to they all have very attractive packages so it becomes somehow hard to make a decision on which is the trustworthy company. At the same time you still have look for a debt merger who shall accept to assist you in your debt situation. There are cases of lenders disappearing with people's money so one should be careful. Therefore, it is important to educate one of the repercussions as well as the advantages involved before deciding whether to unite their loans or not.

Another way to identify a trusty lender is while, taking up the applying for the secured loans take care to not taken advantage of. Therefore, ensure that they value of your collateral similar to the value stated in the contract in addition to be worth the loan. A trustworthy debt consolidation firms includes the ones that do not intend to take advantage of their clients in addition to do not charge very high interest rates that not reasonably priced. This should be the initial criteria to determine how trustworthy the lender is for the reason that you shall be charge those interest monthly. As a result, it is important to ensure they are within your finances since, at that moment your finances are not so good also you do not want to incur more debt.

In addition, a legitimate a debt merger should be highly regarded in the better business bureau, local bureau of standards as well as by the society whereby they have no worrying complaints. Other areas where you should ask as well as check about a trusty debt merger should online, checking at the regular banks as well as asking form relatives and friends. To identify a debt merger organization you can trust it is important initially to have knowledge about the industry that is accurate information. This information will guide as you as make your decision. It is also important to get professional advices also.

Is There a Cheap Debt Consolidation Loan For Poor Credit?

If you have an excessive amount of unsecured debt and you are struggling to make your monthly payments, a debt consolidation loan may be the answer to your problems.

If, in addition to your unsecured debt you have seen your credit score fall, getting an affordable debt consolidation loan may be a bit of a challenge for you. Is it possible to get a cheap or affordable loan under these circumstances? With a poor credit score, any money you borrow is going to be more expensive than if you had an excellent credit score.

Fear of a slightly higher interest rate on a loan is not a good reason to cross this option off your list of possible solutions.

What can you do?

Realize that different lenders have different loan standards and rates. Banks generally have the highest standards, followed by credit unions, followed by commercial lenders. Because commercial lenders usually have access to a variety of sources for funding, credit score problems may not be a stumbling block to borrowing money. With Internet access, you can compare several companies at one time.

But are they cheap?

If a debt consolidation loan can be obtained for a lower rate than the highest rate you are paying on an account, the loan is probably a good idea. Suppose you have credit cards that are at an effective rate of 22% a year. If you can find a loan for less than that amount, getting a loan and paying off the credit cards is a better financial idea.

How do you find a reputable and reliable lending company on the Internet? Start locating companies using a search engine. Research the companies for the number and type of complaints, if any, lodged against them. Check them out with the Better Business Bureaus. Talk to financial experts and bankers in your area. Compare the services and rates between companies.

When you compare the costs related to a debt consolidation loan, remember that you must compare that interest rate to not only the interest rate on your unsecured debt, but you must also include late and finance charges that might be accruing against your unsecured debt when your payments are late.

Do Debt Consolidation Loans Mess Up Your Credit?

Any declaration of bankruptcy stays on your credit report for at least seven years, while a Chapter 13 bankruptcy stays on for ten years. That will mess up your credit rating a lot more than getting a debt consolidation loan. However, one thing to keep in mind when choosing a debt management service is to ignore anyone who says they can erase any bankruptcies from a credit score. That's illegal.

Good Fortune

Fortunately, there are far more ethical debt management services than there are unethical ones. Good companies also offer credit counseling as will as a debt consolidation loan. Grab a hold of those services because they will teach you valuable life skills to keep you from getting back into debt.

But how does a debt consolidation loan affect your credit rating? Initially, it may have a bad effect. But your chances of paying off this type of loan are much greater than not doing anything at all. Once the loan is paid off, then your credit rating will go up, because you have proven that you were reliable enough to make the payments.

Think Long Term Goals

Debt management services are required by law to state that they have given you a loan. Besides, your creditors will know, anyway, because the service will pay off the loan rather than you. On your credit report, these loans may be called "third party loans" and banks generally are wary of anyone who just received such a loan.

But if you can make your payments on time and do not get in trouble with any other creditor, then you really have nothing to worry about. This is especially good for people in credit card debt. A consolidation loan will, over time, cost you a lot less money than paying the credit card company directly because you will not have to pay the outrageous interest rates they charge.

In conclusion, a third party loan will cause a temporary dip in your credit rating - but not as much as bankruptcy will. Also, if you can make your payments on time, then your credit rating will rise again.

Does Consolidation of Credit Cards Lower Credit Score?

Thousands of people all over the country are facing financial hardship and considering consolidating their credit card debts to get out from under the money they owe. If you're thinking about this option, there are a number of things to consider, including the potential impact it can have on your credit score.

Debt consolidation does a number of things for a consumer, some of which can negatively affect your credit score. On the other hand, consolidating your credit card debt can also do a number of beneficial things for your credit history, including lowering your debt to income ratio, a factor that plays a large part in your credit score.

One of the largest things debt consolidating does that can hurt your credit is settling your debt for a fraction of what you owe. This is one of the biggest reasons people use debt consolidation companies: they have too much debt and can't afford to pay it all. It's important to keep in mind that this reduction of what you owe will show up on your credit history negatively, although it's usually worth it for many individuals with too much debt. That's why it's important to carefully consider how much you owe and your ability to pay before you decide to consolidate credit card debt.

A positive thing that debt consolidating can do for your credit score, in addition to lowering your debt to income ratio, is lowering the total amount of creditors you owe. Having a great number of credit lines open can hurt your score and most debt consolidation companies will assist you by closing all of your accounts and paying them off for you. This will mean that you will only have a single credit line open instead of many.

If you're considering consolidating your credit card debt but you're afraid of the impact on your credit score, remember that the benefits far outweigh the negatives for many individuals. Your credit score may go down in the short term, but getting out of debt and paying off what you owe will benefit you and improve your score in the long run.

How Do I Get a Legitimate Debt Consolidation Company?

The best way to get a legitimate debt consolidation is to make sure that you choose a reputable debt consolidation company. This means that you shouldn't always go with your first choice when it comes to things like this. You have to be willing to learn as much as you can about the company that you are planning to work with. Some people even go so far as to only work with consolidation companies that are in their local area so that they can investigate them, and insure that they don't hear bad stories about this company's business ethics.

But this is unnecessary all of the time. There a plenty of companies that are located primarily online that are reputable companies. These companies are well-known for doing good work, and being trustworthy. Many of them have been around since debt consolidation became popular with the public. The best way to determine if these organizations will work well with your specific case is to pick out about five or ten companies. Set aside an afternoon, and call them all with a question or two.

Do some research about the company's background --if you can-- online and see if you can find out how long the company's been in business, and if the company has any negative reviews online or complaints with the better business bureau. Find out also which bank the debt consolidation company you want to work with is affiliated with. You will find that not all of them will be affiliated with huge well-known banks. But you want to make sure they are not affiliated with foreign banks or even banks available in the Caribbean.

Even if the location of the bank is a US territory that is not one of the 48 contiguous states, you should still be leery of it. When dealing with money and financial issues, it is best to just stick with a bank that if you had to visit it, you could. Now if the bank has a long reputation of being reliable and legitimate, and its primary location is not in the contiguous states, then maybe you can give the service a try. Just make sure you know what's going on at all times.

The Top Ways to Consolidate Your Credit Card Debt

In these tough economic times its easy to run up too much money on your credit cards, whether it be from loss of a job, bad investments you were counting on to withdrawal in emergencies, or a multitude of other reason. Whatever the cause, the result is still identical; you have too many bills with not enough money to pay them. The best option is to reign in your spending habits and save enough money to pay back your cards as quickly as possible. However, for people already on a tight budget this may be impossible. If this is the case for you, it may be in your best interests to consolidate your debt instead of paying each card off individually.

The Benefits of Consolidation

There are several benefits to consolidation. Most times you will get better interest rates with a consolidation loan or balance transfer offer than you had on your old card. This is especially true of home equity loans. If you're deep in debt, just a few percentage points can add up to substantial savings each year - savings you can use to repay the principle on your loan.

There is also only one bill to pay each month. You only need to remember one due date and one creditor to pay instead of remembering the due dates on several different cards or loans. In most cases, your monthly payment will also turn out to be lower when you consolidate than they were before consolidation.

Your credit score also stands to benefit from consolidation. If you have too many lines of credit open, it begins to negatively impact your credit score. By closing some of these lines you should see an improvement in your score. However, be careful not to close too many. One of the essential elements of your credit score is the percentage of your credit line that is in use. This fraction counts for thirty percent of your score and if you have cards that are almost maxed out, your credit score can go down by several hundred points.

Most people consolidate their credit card debt in one of three ways.

Zero-APR Balance Transfer Offer

One of the easier ways to consolidate credit cards is to find a card with a zero-percent balance transfer offer with a credit line large enough to transfer your existing debt onto it. With a zero-percent APR, all your money is put towards paying off the principle, not the interest. Even if you can't find offers at zero-percent, still paying several percentage points less in interest should add up over the time of paying off the loan.

However, you do have to be careful of the fees that are assessed at the time of the balance transfer. Most, if not all, credit card companies charge a certain percentage, usually between three and seven percent, of the balance transferred upon putting it on your new card. If you can't pay off your balance soon, you will still save money even with these fees, but if you were close to paying off your balance you might be better off keeping your money on your old card and paying interest for a month or two. Choose wisely.

Take Out a Home Equity Loan

If you owe over $10,000 in debt, you may want to consider taking out a home equity loan. Home equity loans are loans that use the equity that you own in your house as collateral. Because these loans are secured, you can get a lower interest rate on them than you would with unsecured personal loans. But if you have bad credit you may not be able to obtain one of these loans, or the interest may be close to the interest on your credit card. You also must pay mortgage closing costs at the start of the loan, taking a few more dollars out of your pocket. Finally, be careful not to fall behind on your payments for this loan, if you do the bank will seize your home.

Debt Consolidation Personal Loan

If your accounts are already in collection, you have no property to use as collateral, or you are way, way, way in debt over your head, you may want to use the services of a debt consolidation company. These companies work with your lenders in an attempt to lower your interest rates and monthly payments. They pay your creditors directly, so each month you write them a check and they send it in to your creditors.

Do your research before entering into a contract with any of these companies however. Some may advocate not paying your bills to get a better deal, or they just may not send in your monthly payments. Either way, your credit score will be damaged by these actions. Your best bet will be to find a non-profit debt consolidation company that's well established in the field.

Always Rip Up Your Cards

I can't stress this enough, when you've taken these steps and consolidated your cards, rip up your old cards and cancel the accounts, especially if you can't control your spending. This step is important. If you cheat and don't close an account, you may end up with more debt than you started with - the old debt you consolidated and the new debt you're running up on your credit cards again.

Remember the first rule of holes - "If you find yourself in a hole, stop digging!"

Does a Debt Consolidation Company Request a Settlement?

Debt consolidation is different from debt settlement and it is important to make the distinction between these two services clear. There are different debt relief programs that will work most effectively toward the financial freedom of various groups of individuals. Understanding the differences between consolidation and settlement services will help you to select carefully the debt management plan that is right for you.

Consolidation

Debt consolidation is the practice of acquiring a single loan that effectively pays off all of your creditors in one single blast. The consolidation loan is then paid off in monthly installments that are submitted to a single company, at an interest rate and set fees that are agreed upon by both parties concerned.

Consolidation loans are therefore used to pay off your creditors in full. There are no negotiations involved in this process that are aimed at reducing the amount of money owed to creditors in order to settle your accounts.

Settlement

When individuals miss several payments or find themselves in a situation where they are perpetually being charged late fees on their account, the amount of money owed can quickly swell to enormous amounts. In these situations, it can seem nigh unto impossible to ever repay both the principle debt and all of the late fees associated with the account.In this case, settlement negotiations can be entered into in order to cut away a large portion of the late fees and interest charges associated with the account and to settle the account for an agreed upon, reduced amount of money.

How to Choose

Many individuals may be tempted to choose a settlement option when they hear that the amount of money they owe can be reduced. However, settlement options can have adverse affects on your credit rating, whereas consolidation loans help to restore your credit rating to a stable position.

If possible, individuals should attempt to resolve their debt problems with a consolidation loan in order to protect their credit rating and close their accounts with creditors in good standing. Requesting a settlement should be the last solution you look to with your debt relief organization in your attempts to restore your credit to good health.

Is Consumer Debt Consolidation For You?

Before you make your decision of how to pay off debt you need to know what consumer debt consolidation is and if it is for you. Let me explain what it is for you as simply as possible.

Consumer debt consolidation is a loan that you can get from a banking institution using some sort of collateral, such as your house of sometimes your car. You should be able to get this debt consolidation loan for a lower interest rate than your unsecured debt like your credit cards. You then use the loan money to pay off all of your small unsecured debt and then just pay the secured loan on a schedule.

Sounds good right? The problem is that you could loose your collateral if you default. You think you are in trouble now just waiting until that bank that was so nice to give you the loan starts foreclosure on your home. If you got yourself in over your head in unsecured debt you will very likely do it again if the pressure is suddenly less. You need to make sure the causes of the debt are not going to get you back in debt.

What are Your Alternatives?

A good way to keep debt from creeping up is to avoid what look like fast solutions to your problems.

There is a better way of paying off your debt. I won't claim that it is easy; in fact it is a lot of hard work. Once you get started the debt tends to disappear and you come out if it wiser and ready to make better decisions.

No Cost Nonprofit Debt Consolidation Advice That Could Save You Thousands in Fees!

Nonprofit Debt Consolidation programs can save you thousands in fees! In these topsy turvy economic times, it has become commonplace for consumers to seek out professional help to assist them in resolving their debt problems. If you are contemplating debt consolidation, we strongly urge you to take a look at nonprofit debt consolidation programs. As quiet as it is kept, these programs will save you thousands of dollars in upfront fees and monthly payments.

Let's face the facts, not all debt consolidation companies are created equally. You have the "For profit" companies versus the Nonprofit Debt Consolidation programs and then you have the legitimate programs versus the illegitimate ones. Our mission is to help you save thousands of dollars by showing you why Nonprofit Debt Consolidation programs should be your solution of choice. There are three primary reasons why this option is your best choice.

Reason #1 - They Don't Charge High Upfront Fees - Nonprofit Debt Consolidation programs don't charge upfront fees. You need to know that other services charge upfront fees averaging anywhere from $1000.00 to $3000.00 and up depending on how much debt is involved. These upfront fees always amaze me because the people who pay them are the ones who can least afford them! Illegitimate debt consultants are the ones who primarily demand these enormous upfront fees. People pay the fees because in the sales pitch, they are promised the world and the hard nose sales reps are so persuasive that many consumers can't help but pay the fees.

Reason #2 - They Don't Demand That All Debts Be Included - Oftentimes, for-profit companies do not have your best interest at heart. They look for ways to tack on additional charges and extra fees. One technique they use is to demand that all of your debt should be included in the debt consolidation. By doing so, they can charge you higher fees because they are handling more accounts.

If you have some accounts that already have low interest rates there is no need to renegotiate those. These companies know this, but they insist on adding those accounts for the sole purpose of collecting more fees from you. Although you have a choice on which accounts you want to include, illegitimate companies will attempt to force your hand to include all of your accounts.

Reason #3 - They Don't Mislead You With Low Ball Quotes - For-profit companies and illegitimate companies haven't technique called "low balling" that they use to entice people to sign up for their services. They will in a deceptive manner provide false monthly payment figures. For example come they will tell you that your total monthly payment after they negotiate your debt is going to be $400.00 per month.

When in fact, your actual payment will be more like $700.00 per month. Their objective here is to use the lowball figure to collect the upfront fees. After they've collected those fees, they really don't care what happens with the client. A legitimate company will provide actual figures up front after they have completed their debt and income analysis.

By the time you add up the money lost from the enormous upfront fees, the extra charges paid because the demanded that all of the debts be included and damage from the low ball quotes, you're talking about thousands of dollars! Now you can see why a Nonprofit Debt Consolidation program should be your debt solution program of choice!

4 Ways to Help Yourself Get the Real Deal With Debt Consolidation Loans

Companies that offer assistance and in return, they earn from it. That is always the case for every business.

For one who is in debt, you need to come up with a solution on how to deal with your current financial status, be it a bad credit, low credit rating, so on and so forth. Debt consolidation loan companies are out there to help but they are also out there to earn a living, earn an income. That is a fact.

So, as a debtor, you would naturally, look for the best option to help you lessen your debt, improve credit rating, and eventually, get rid of your debt. As debt consolidation companies help you out, also know how to help yourself in dealing with a debt consolidation company.

Here are four ways that you could include in your list as you scout for debt consolidation companies.

1.    Annual percentage ratio of the loan, how much does it amount to?

2.    Is the annual rate on a variable interest rate, that would change depending on the period of the loan, or is it a fixed interest rate?

3.    Are redemption fees offered? These are the interest rates being paid for should you pay your loan off after a year, or should you follow the number of years noted in your loan.

4.    Is there hidden loan insurance when you ask for a quote?

So, really, what help you would get for yourself should always be checked, perused and carefully studied. After all, if you are being helped, then you should not be given any hidden charges, right?

Be Debt Free - Get Debt Consolidation Help

If you are currently suffering some setbacks and find yourself in the midst of debts you can no longer manage, get debt consolidation help. Why is that? Here are some advantages when you are debt free:

1. Less stress: When you will no longer be constantly worried about getting demand letters or unwanted phone calls from collection agencies, you can sleep soundly at night.

2. Great credit score: The importance of a good credit score need not be discussed. Surely, you know this well. You cannot get a home loan or a car loan that easily if you have bad credit.

3. Financial freedom: When you are not in debt, you do not have to set aside money to pay for anything else other than the things you want and need. You will not have to pay high interest rates, which could go up to thousands of dollars. You can put this money to good use for something else.

Being debt free has a lot of advantages. For you to make this possible, get a debt consolidation loan from a company you can trust.

There are many lending institutions that would like to offer help to people having a hard time managing their finances. You can even get free debt advice from experts who know what it takes to help you rid of your debts. You cannot go wrong with these companies, as they are professionals and skilled at what they do. As a note however, make sure to do your homework and research well on these companies before applying for a debt consolidation loan.

Getting a Debt Consolidation Loan With Poor Credit

It is a fact that men and women with poor credit can secure a debt consolidation loan. There is a way for bad credit rating and even debtors in the worst credit situations can reach out and find relief.

When good consolidation companies offer loans to individuals with poor credit, they treat them with respect and offer them fair rates. When bad consolidation companies go after people with bad credit, they often sneak hidden fees into their payback plans and treat their customers like they are unworthy of better treatment.

Remember, you deserve good customer service and affordable consolidation rates! Every company that offers debt consolidation services to the public makes their living off the fees they charge. That means that they need you more than you need them! Take the time necessary to seek out and hire a consolidation company that is willing to treat you as a valued customer.

Even the most reputable debt consolidation company may need to charge men and women with poor credit higher interest rates for their loans. The truth of the matter is that creditors are taking a risk in offering a loan to individuals with poor credit and they deserve just compensation for their risk. This DOES NOT mean that they have a right to charge astronomical fees, but be aware that rates may be higher than average.

In addition, most consolidation companies charge their customers upfront fees for the manpower involved with dealing with your creditors and paying off your accounts. Again, they are taking a risk in assuming all of your debt and an upfront payment helps to offset these risks for the company.

By the way, by researching and comparing the best debt consolidation companies in the market, you will be able to determine the one that meet your specific financial situation, plus the cheaper interest rates offered. Nonetheless, it is advisable going with a trusted and reputable debt counselor before making any decision, this way you will save time through specialized advise coming from a seasoned debt advisor and money by getting better results in a shorter period of time.

Using Introductory Credit Card Offers to Either Reduce Or Eliminate Credit Card Debt

Using Credit card offers to Consolidate credit card debt is a good idea or rather we are led to believe it is if we choose to listen to everything we hear. On this occasion however it is very difficult to argue with those people voicing that opinion.

In fact it is one of the first steps that should be taking to address the problem of excessive credit card debt, but many people wonder what they need to do and how to go about credit card consolidation.

It is easy to understand why so many people are confused when they are faced with the sheer volume of choice available to them and many of them wonder whether they should just opt for the lender that advertises the lowest APR.

The answer is never quite that simple as the number of lenders offering promotions is large and it is well worth taking your time to check out as many offers as possible comparing everything the offer entails and not just a low Apr.

As mentioned, there is an ever increasing number of credit card balance transfer offers available for you to choose from and new and more attractive offers appear every week asking you to consolidate your credit card debt with them.

There are three primary things you must always look at when considering a balance transfer offer;

1. The special introductory APR; the lower the better.
2. The length of time that the introductory APR lasts for; normally between 3 to 12 months but the longer the better for you.
3. The standard APR that the card reverts to once the introductory period ends; again, the lower the better.

Each of these is important but let's take a closer look at just how important they all are:

The Introductory APR is without doubt the lure that tempts people into signing up with a service provider and is what most people will look at when considering using a card for consolidation purposes.

It is still possible to find cards that offer a 0% introductory APR and these should be checked out first of all. An introductory offer, irrespective of whether it is 0% or a low Apr, will provide some much needed breathing space with which the user can reduce and hopefully eliminate their credit card debt.

Needless to say the longer the offer period the longer the period of time you have without paying interest and the further you will be able to eat into your debt. If the offer period is long enough that you are able to clear your debt, fantastic; if not, then you will still have succeeded in reducing your debt load as well as saving yourself a huge chunk in future interest payments that you would have otherwise had to pay.

That brings me nicely onto the standard APR. If you were unable to clear your debt using the introductory offer and are still left with a debt balance then knowing the standard APR is vital.

There is absolutely no benefit in taking advantage of introductory offers, no matter how good they are if you are left with an outstanding balance at a high interest rate. If you were to end up in this situation it would take a very short time to reach the same level of debt as you experienced before and you could even end up in a far worse situation.

However, if you are confident that you will be able to completely clear your credit card debt, in its entirety, during the introductory period, you can certainly be more flexible when making your offer choice.

It's quite simple really, the card that matches your requirements, both current and future, is the card best suited for your needs.

How a Debt Consolidation Program Will Help Get Your Finances Back on Track

Are you buried under a mountain of credit card debt? It's a terrible feeling. You may wonder how you will ever work your way into the clear again. A debt consolidation program may be the answer you are looking for. If you are falling behind and creditors are hounding you, you have three choices. You can file for bankruptcy and clear out most of your debt but your credit will be ruined for 10 years. You can take out a consolidation loan which combines all your little bills into one huge bill you still have to pay each month. If your credit is bad you might not qualify for a loan or you might have to do something drastic like mortgage your home just to pay your credit card debt. Consolidation loans are rarely a wise choice because it amounts to trying to borrow your way out of debt.

There is a better answer than either of those two choices and that is working with a qualified debt consolidation program. When you sign on with a debt consolidation company, they immediately take the worry from your shoulders. From that point on they deal directly with your creditors so you can breathe easy when the phone rings. The company will negotiate with your creditors and get them to lower the amount you have to pay back. This is usually done by eliminating fees and slashing interest payments. You will still have to pay off your bills but it will be much easier for you to do so.

When you sign on with a debt consolidation program, your counselor will work up a repayment plan based upon how much you can afford to pay each month, the total amount you owe and approval from your creditors. You will make one single payment each month to the company and they will distribute it to your creditors in a way that will get you out of debt the quickest. You could be debt free in just a few years.

When you are in a debt consolidation program, you cannot get new credit as it shows up on your credit report. If you are having financial difficulties you should not be seeking new credit anyway so this is usually not a problem. When you have finished the program your paid off credit lines will be reflected on your credit report which will improve your credit score.

Credit cards and other unsecured lines of credit are the only types of debt eligible for a debt consolidation program. Home and car loans do not qualify since they are secured loans. Using one of these debt programs can do wonders for your peace of mind. Things happen in life and people wind up in debt. It is a very common problem in society today.

If this has happened to you, consider your choices wisely. There is no need to sink further into debt or file bankruptcy when a better choice is available. End harassment from creditors and simplify your life with one monthly payment. Watch your mountain of debt dwindle as a professional debt counselor helps you turn your finances back around.

Debt Consolidation - The Different Methods

The recession seems to be going on and on.

Many thousands of people have been made redundant. Even those who are still in employment have had their income cut. Some employers have asked their workers to take a pay cut, as it is the only way to survive until the economic climate improves.

Other workers are working five days per week, but are only being paid for four.

The more fortunate among us who are being paid fully for a working week may not now be doing the overtime they did in the past, and which was needed to maintain their standard of living and pay all their outstanding credit monthly.

The most awful thing in life, apart from suffering from ill health, is the problem of struggling financially.

It can affect your physical and mental health, and even break up relationships.

The recession turns out to have been even more grave than we were first advised with the Government announcing recession figures of 2.4% compared to the original figure of 1.9%,

If each month you are really juggling your finances, and have even started to make late payments, you must act now before the situation becomes even more serious, and your credit rating could be affected, making it difficult for you to obtain a loan or remortgage in the future.

The best way to alleviate the situation if you have numerous financial commitments is by debt consolidation

Debt consolidation is combining all your credit cards, personal loans etc. and consolidating them into one by means of debt consolidation.

If you do not own your home and are finding it impossible to meet all your repayments, debt management could be the only way forward.

In cases of struggling so much that you are really insolvent, a Trust Deed in Scotland or an IVA in England may be the only option. These are very serious methods to enter into and should only be considered as a last resort.

However if you are a homeowner you have a choice of two main ways to arrange this.

The first method of debt consolidation is by taking out a debt consolidation loan.

If you are feeling overcommited financially but still have a fairly good to good credit rating you can obtain a homeowner loan with a rate of interest starting at about 8% APR.

Compared to the interest rates on credit cards, this debt consolidation rate of interest is very good.

Add up the balances on your credit cards, personal loans, etc, and if they come to say £40,000 apply for debt consolidation of that amount.

When you obtain a quotation you will be amazed at the saving every month. Paying the minimum payment to £40,000 of credit cards would cost £1,200 per month, and only ever making the minimum payment hardly decreases the balance, and experts say takes about teweny six years to clear.

A homeowner loan for that amount would be in the region of just under £500 per month over a ten year period. What an enormous saving! With this method of debt consolidation, you keep your existing mortgage in place and arrange the loan separately.

The other main method of debt consolidation if you are a homeowner is a debt consolidation remortgage.

If you have £40,000 outstanding in credit cards, etc. and an existing mortgage of £120,000, you would take out a remortgage for £160,000 which pays of your present mortgage and all your oustanding credit.

The interest rate for a remortgage varies considerably, with one of the most important factors for being granted a very low interest being the L.T.V which means the amount of equity on your property.

A remortgage also saves a considerable sum of money monthly, and also gives you peace of mind.

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Non Profit Debt Consolidation Loan

There are many options available when it comes to repayment of debts. A credit counselor could advise a lender to talk to the creditors to allow them pay the loan at a lower interest. They will also encourage the borrower to ask for more time to pay off the liability. The non profit debt consolidation loans will protect the borrower against any collective action by the creditor. This means that, the creditor will not make any calls or any form of effort towards the collection of the liability.

Companies that offer non profit debt consolidations loan will also help the borrower to understand how the repayment of the loan will be beneficial in credit scoring. There are automated mathematical equations that the credit agencies use that may not be available to the lending companies. As such the only thing that the lending company can do to help is to advice on how to improve on the credit ratings.

These non profit consolidation loan companies are also instrumental in offering credit counseling for free. The borrower will therefore benefit by appreciating the various options. It is important that the borrower understands some of the things that may not be clearly stated by the lending agency. The borrower will be required to understand the terms and conditions governing the loan, including the repayment plan and the interest rates.

Genuine non profit making companies will ask the borrower to pay a very low amount in the donations. It is worth noting that normally, consolidation means turning those liabilities that are not secured into one secure loan. As such the borrower will be required to give some form of collateral for the loan given.

Debt Consolidation Loans For Cash Advance Relief

Cash advance loans can be a useful financial tool in a short term emergency despite expensive financing costs and fees, but if overused consumers can find themselves in a vicious cycle where their multiple cash advance loans are deducting from their checking account each paycheck leaving nothing left for survival. If you find yourself in the cash advance trap, surprisingly, simple debt consolidation loans are often the best means of providing debt relief.

Debt consolidation loans are the ideal method of reducing and tackling your cash advance debt for a couple of reasons. Cash advance loans are designed to be short term emergency loans. They generally have a short payoff period, high interest rates, and expensive up front load costs to cover a quick payoff as interest should not have a long period to accumulate if you pay off your loan quickly. The difficulty lies in a consumer acquiring multiple cash advance loans and loses the ability to meet their terms, with fees and penalties for late payment, one can quickly find themselves paying their entire income to financing charges rather than principle.

Payday advance loans can be especially insidious because they usually given access to your checking account at the time of application. When all works well, this is to fund your monies loaned directly into your checking account fast, and so that they may deduct their payoff terms directly upon your receiving your next paycheck. There is nothing wrong with this when it is managed and under control. But overextending with multiple loans and late payments can make it so multiple lenders have access to your next paycheck before you do!

Debt consolidation loans are an ideal instrument to provide debt relief in just such a case. But how can more loans, you say, provide debt relief when it was too many loans that got you in this situation to begin with? The answer is in the structure and intent of the debt consolidation loan vs. the cash advance loan. Whereas the cash advance loan is a short term, short payoff period loan intended for an emergency, a debt consolidation loan, on the other hand, is a longer term loan that comes with the advantages of greatly reduced interest rates, longer payment periods, and greatly reduced payments in many cases. These loans can remove the burden of interest from your back, allowing you to get back on track and working towards paying off what you owe, rather that what the insidious fees and penalties.

Debt consolidation loans come in many shapes and sizes, but in general terms will consist of a much more agreeable note with which you can pay off your higher interest rate cash advance loans or credit cards that are weighing you down. You will now have one loan having consolidated and with the additional money you save you can begin to pay down what you owe.

The cash advance loan trap is common, it is just important not to fall into it again once you have used debt consolidation loans to achieve relief. With discipline and focus you will be back on track and debt free in no time.

Why Use Care One Credit For Debt Consolidation

If you are struggling with debts then debt consolidation is a legitimate way to allow you to get out of your debts and back to normal life whilst avoiding bankruptcy and all the difficult consequences that it brings. There are many debt consolidation companies around but it is important to know that they are not all the same. The debt relief industry often gets a bad reputation and this is the fault of some unscrupulous companies in the industry.

A good debt consolidation company will allow you to consolidate all those debts into one single payment. This removes a massive amount of stress from the situation. Consolidating into one payments also means that the interest that you a re-paying will be able to be reduced. One disadvantage of many consolidation schemes was the fact that to qualify for these loans you had to have equity in an asset such as your home to put as collateral for the loan.

However, most people who found themselves in the situation of needing a loan like this don't have that level of equity. It can be a real catch 22 situation. That is why Care One credit is an excellent option for those people who find themselves in this situation. Care One credit are in a unique position to offer people consolidation loans that do not require security to be accepted for.

It should be pointed out though that this is not an 'easy option', anyone entering into a loan agreement needs to be motivated to complete the program.

Credit Card Debt Consolidation - The Basics

Credit card debt consolidation is a term that gets thrown around on TV a lot. Once you understand what debt consolidation is and how it is accomplished, it is very likely you can accomplish the same goals and get the same benefits without paying anyone an excessive fee.

The reasons debt consolidation services have sprung into existence is that with the challenges in the economy like unemployment and the prices of so many of life's necessities going higher and higher, many people are spreading their debt over many cards. The result is that an average person might have three or more cards with high debt run up on each of them. Because of this the interest fees being charged on a monthly basis by the credit card companies can get quite high and spiral out of control.

The first point of credit card debt consolidation is to get all of your debt into one master account. Then, as soon as you can, get rid of the credit cards, then close the credit card accounts entirely and try to get a reasonable interest rate on the master  account and you can deal with this one account over time.

One tactic that is often used to move your debt to lower rate interest loans is to use 0% offers from credit card companies. That is fine, but be careful with those because sometimes there are hidden transfer fees that can be as high as interest payments

If you can move several thousand dollars to a zero percent loan for six months, then do so, but make sure you work on paying off higher interest cards.

Be sure and read the small print on the 0% credit card contract because at the end of your "free" period the interest rate on that new card account can oftentimes be higher than any of your other credit card interest rates.

Start a diary of your debt where you document each card you have, what the interest rate is, what your credit limit is and what your minimum payments are and when those payments need to be made during the month.

This diary will tell you which credit cards need the most attention and where you should look to consolidate two credit cards into one or all of them into the one credit source that you feel you can work with long term.

By working with that partner you can make a plan to consolidate your credit card debt and get rid of it once and for all.

Debt Settlement Processing - A Few Things You Must Know

Debt is one word that is so much dreaded, especially when it involves huge amount. Before you embark on any Debt Settlement Processing, you have to acquaint your self with debt matters and the options available at your disposal. Such information can be obtained by either consulting experts in debt management or meeting with your financial institution.

Bankruptcy Should Be Your Last Option

Before you embark on bankruptcy as your debt settlement remedy, make sure you must have tried other possible means until you are sure that there is no more remedy other than going bankrupt; in that case your choice is justified. By the way, bankruptcy is a Debt Settlement Processing undertaken by individuals who has no other means of repaying their debts.

What Happens When You Are Declared Bankrupt?

In the first place, the court steps in as a mediator between you and your creditor. The court from that time will step in and ensure that you are shielded from any adverse treatment your creditors might want to mete out to you.

If in the course of time, you are able to come up with part of the payment for your debt, you will only do so through the court in a space of 3 years.

When three years elapses, any part of the debt unpaid shall be written off.

Your bankruptcy period is usually for a whole year

Your car will not be confiscated since it is rational for you to keep it, besides vehicle is not regarded as a property of high worth.

Also, any of your home items that of a valuable worth will be left for you, only on the condition that the worth of these items is not more than what it will cost in replacing them.

You will be required to sell any asset in your possession that is of high worth e.g. costly vehicles and antiques.

If you have holding to equity or any landed property, whether you have full possession of the landed property as the owner or you are still paying mortgage on it, it will be transferred to the court. The court in return will take action to realize this equity for the benefit of your creditors. This means that you have the option of getting a third party to purchase the equity by making offer to the court or the court will be forced to make the sales of the equity by themselves.

There seem to be some modifications in the Enterprise Act of April 2004 concerning laws governing bankruptcy. This change is favorable to some individuals who want to start bankruptcy debt settlement processing as a means of debt settlement, but to some people, it is not.

It is highly important that any one seeking to start debt settlement processing in bankruptcy, should first consult debt management experts with the details of his/her debt problems. Advice will be offered to you on the best debt management solution that is suitable for your peculiar debt problem. Bankruptcy might not be the best solution for your debt issues.

How Do Debt Consolidation Services Work? Debt Consolidation Info

When you think about debt consolidation, you need to first think whether you really need it or not. Debt consolidation is not very complex or difficult to understand and if you approach any company that is offering these services, they will be more than eager to help you out. Nevertheless, before you opt for this solution, you should consider if this solution really applies to your situation.

Debt consolidation means taking one large loan in order to pay back all present smaller debts so that you are left with making a single payment every month. The benefits are obvious. You save some on the interest because you can get the big loan at a lower rate of interest.

Besides that, you will also have the ease of having to make a single payment every month instead of trying to keep track of making multiple payments every month.

However, while debt consolidation seems easy and good on paper, you need to think a bit more on it so that you can be absolutely confident that this is going to be a better deal for you than your present situation.

Of course, it offers you a simple way of paying back your debts and it gives you relief from stress. However, you should make sure that this step of yours is going to improve your present financial situation.

Compare the total you will have to pay through this new loan and that you will have to pay through your old debts. This comparison will help you understand if you are actually paying back more in the long term.

While the consolidation loan will offer you the ease of making single payments every month, it might actually cause you to remain in debt for a longer period and thus, cost you more compared to your present debts.

The consolidation loans are generally to be paid back over longer periods and that is what makes it costlier. In addition to that, the lower your monthly payments are, the more you will be paying in long term.

Do not opt for debt consolidation simply for the ease that it offers. Consider all these points before going for this solution. You can search for other methods that do not involve any kind of borrowing or even paying somebody else.

You can negotiate terms and interest rates with your creditors and this way you might be able to strike a deal with them, which will be less costly for you.

Therefore, it is always better to consider all the aspects of debt consolidation and see if this will really work for you before going for it.