Debt Consolidation

How to Actually Decide if Debt Consolidation is Right For You (and When It Isn’t)

Sometimes when you’re swimming in debt, taking control of your circumstances once and for all seems like an unbearable burden.

You have most likely considered a few different paths you could take to pay off your debt, but decision paralysis is a real thing, my friends. Just remember, you’re not alone.

Credit card debt is America is growing at near lightening speed. In fact, the average American household carries over $15,700 in credit card debt. With average interest rates being nearly 14%, American families are paying more than $2,000 of interest if they choose to only make the minimum monthly payment.

That’s crazy!

It probably won’t surprise you then that debt consolidation is a hot topic among those working to get out of debt and achieve financial freedom.

Not only can a debt consolidation loan help achieve this goal, but it already has for many thousands of Americans living with debt.

But that still doesn’t make it the right choice for everyone.

In case you’re unfamiliar or foggy brained on what it means, debt consolidation is essentially the process of gathering up all of your eligible debt, combining them into one lump sum, and taking out a new loan with new terms and conditions to create a single monthly payment. Once the process is in motion, you make a single monthly payment and the firm you are working with distributes the funds to the appropriate debtor until the debt is completely paid off.

So, what’s the catch?

This is where the “not right for everyone” advice comes in.

While combining debt into one payment may be a promising option, it’s good to understand what you’re getting yourself into before diving straight in.

To Consolidate or Not Consolidate, That is the Question

First, it’s critical to understand which debts can be combined and which cannot.

Debt generally falls into one of two categories: Unsecured debt and secured debt.

Unsecured debt is debt that has no underlying asset backing it up, like credit card debt, medical bills, utility bills, and other types of loans or credit you may have.

Secured debt is debt that is backed by an asset, meaning if you fail to make payments, your creditors have the legal ability to take away the asset. Examples of secured debt are things like auto loans and mortgages.

The vast majority of debt consolidation companies only work with clients who have unsecured debt, so if you are hoping to make this work with a car loan or mortgage payments, it’s time to go back to the drawing board.

Benefits Anyone Can Appreciate

When researching debt consolidation, it’s easy to find all the black and white reasons why you should or shouldn’t sign-up with a consolidation firm, but here are few areas where we can all meet middle ground about whether it’s good or not.

Payments become easier. Instead of worrying about meeting due dates on multiple credit cards and various other debts, you will only need to worry about making one payment, on time, each month.

Lower interest rates. If you’re able to secure a consolidation loan with a lower APR than you are currently paying against, the savings in interest could potentially take years off of your debt repayment, which is huge!

Improved credit score. Debt consolidation won’t do your credit score any favors in the short term, but once debts are paid off, many people see a significant improvement on their credit scores in a relatively short time. As you know, this is incredibly important when bouncing back from a serious amount of debt.

Still sound good?

Let’s move on to discussing the not so glamorous side of consolidation: The risks.

Risks to Consider

As you have probably guessed, there are risks involved when it comes to choosing and working with a firm for help with your debt. After all, debt is big business. But being aware of the risks involved is key to avoiding a bad situation.

Before signing up with a firm, consider how you got into your current situation in the first place. Was there a major life event that essentially forced you into a large amount of debt, or maybe you just aren’t sure how to create and stick to a budget. Whatever the reason is, try to identify it.

Second, once your debt is paid off and you can spend freely again, how confident are you that you won’t end up in the same situation later down the road. Many people swear they will never fall back into an overwhelming amount of debt, but without the knowledge and discipline to spend and save wisely, it can happen easier than you might realize.

The Bottom Line

Consolidation can be a great tool to systematically pull yourself out of debt, but as with most things in life, there are risks and rewards to consider. If you are ready to commit to the process and ask for assistance when you need it – both before and after debt – it may help you get out of debt sooner than you realize.

Author’s Bio:

christineChristine Yaged is a co-founding partner and Chief Product Officer of FinanceBuzz. Christine launches and scales brands. She is passionate about technology, digital marketing, and people.

Thinking About Debt Consolidation?

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If you’ve been dealing with credit card debt, or other unsecured forms of debt, and times have gotten tough, you may be considering debt consolidation. While this option is indeed a good fit for many, there is no such thing as a one size fits all solution to debt. With that said, there are a few things that you should consider when thinking about moving forward with a debt consolidation loan or program.

What Is Debt Consolidation

Debt consolidation, in its most basic of explanations, is just what it sounds like. It is the consolidation of multiple debts into one single account. However, when you break it down, debt consolidation does much more than turn multiple payments into one. Ultimately, there are two basic types of debt consolidation:

  • Debt Consolidation Loan – A debt consolidation loanis exactly as it seems. It is essentially a new loan provided to those with multiple debt accounts for the sole purpose of paying these accounts off and combining them. The goal with this type of loan is to reduce overall interest by combining several high interest loans into a single, lower interest loan. Ultimately, this reduces the minimum payment required and creates a fixed payment schedule, not only making it easier on a financial level, but on an accounting and organizational level.
  • Debt Consolidation Program – Those who cannot qualify for a debt consolidation loan, often look to debt consolidation programs. Based on the idea that the borrower is going through a financial hardship, debt consolidation programs differ greatly from loans. With these programs, a debt consolidation company is generally granted power of attorney over your accounts. This means that they make the decisions and payments for you. From there, the company will negotiate a lower interest rate based on your financial hardship and willingness to pay the take a proactive step to ensure that your debts don’t go unpaid. Once lower rates are negotiated, the debt consolidation accepts a single payment encompassing all minimum payments and fees associated with the program, later dispersing the payments to the lenders which hold the accounts.

Benefits Of Debt Consolidation

At the end of the day, there are several benefits that come with debt consolidation, whether it be a loan or a program. Some key benefits include:

  • A Single Monthly Payment – Financial management resource found that the average American owns credit cards owns between 3 and 4 credit cards (3.7 is the exact number). Having several monthly bills to follow can be cumbersome. However, debt consolidation offers the benefit of breaking your debts down to a single monthly payment.
  • A Lower Monthly Payment – Another major benefit, especially those dealing with financial hardship, is the fact that debt consolidation will generally lead to a lower overall monthly payment. Ultimately, this allows you to keep more of your hard-earned money.
  • A Fixed Payoff Schedule – Whether you go with a debt consolidation loan or a debt consolidation program, you will be placed on a fixed payment schedule. Usually, debts included in these programs, like credit card debts seem to never have an end in sight. Not to mention, the payments on these accounts can fluctuate wildly. With a fixed payment schedule, you’ll not only know how much money your bill will be each month, but when you’ll finally stop receiving those bills.

Drawbacks Of Debt Consolidation

While perfection is something we all look for, it very rarely exists, and chances are, it doesn’t exist across any debt relief option. There will always be some drawbacks. In the case of debt consolidation, these drawbacks include:

  • Damaged Credit – Often times, debt consolidation can lead to damaged credit. This is particularly the case when it comes to debt consolidation programs, not loans. With the changed terms, the closure of revolving accounts, and the various financial hardship programs likely included, borrowers can expect to see a negative impact on credit. If a loan is the route you plan to go, it can actually improve your credit, but it has to be done right. First and foremost, closing your credit cards once paid off will lead to closure of longest standing accounts and reductions in available credit. These factors can lead to declines. Therefore, to avoid declines in your credit score when choosing the consolidation loan option, keep your other accounts open and in good standing. Just don’t over use them!
  • Amount Of Assistance – With debt consolidation, only so much assistance can be provided, and it is usually provided through the reduction of interest. However, you’ll still owe the same amount of money, and minimum payments will have a limit as to how much they can be reduced. While they will cause more harm to your credit, if your financial hardship doesn’t allow you to make the minimum payment required with debt consolidation, you may want to consider debt settlement.

The Takeaway

The takeaway here is that debt consolidation is indeed a great program for many. However, it’s not the one-size-fits-all solution you may think it is. The truth is that as the borrower, you have many options, and before making any financial decisions, it’s important that you get a good understanding of these options.


Easy Steps You Need to Take to Get Out Of Debt

If you are in debt then you will understand that the pressure you are under is enough to really make you dread even talking about money. Of course, if you have never been in debt before and this is your first time then there are a couple of things that you can do about this. The first thing that you will want to do is look at your expenses so that you can try and find out if you can cut back. This could include any magazine subscriptions that you have and it could also include any payments that you make to charities, phone contracts and more. When you have a clear idea of your finances and how you can save money, it is then very easy for you to get out of debt.

Stop Borrowing Money

This may sound obvious but if you want to get out of debt then it is very important that you stop using your debt to fund your own lifestyle. You need to stop signing up for any credit cards and you also need to stop even looking at things you don’t have the money to pay for. This will work in your favour if you opt for a bill consolidation or if you decide to go down a similar route.

Debt Calculator

Emergency Fund

You may be thinking that an emergency fund isn’t important when you are so much in debt. After all, you may feel as though you are paying absolutely everything out of your bank and that not much is going back in. The truth is that when you get a bonus from work or even when you get some money from a friend, this should go into your fund. If you use your credit card to fund all of your emergencies then this will cause real problems for you and you may even feel as though there is nothing that you can do to get out of debt. By saving whatever you can, you can then be prepared for life’s emergencies at all times.

Emergency Funds

Create a Budget

When you develop your own budget, you can then track your expenses and this is very crucial if you need to get out of debt. When you have a budget, you can easily find out how much money is going out and you really would be surprised at how much money you can save by doing this. If you are struggling to make a budget and stick to it then you may want to start using an app or anything else of the sort as this can really help you to track your expenses while you are on the go and it is a great way for you to make sure that every little thing is accounted for, so make sure that you keep that in mind. Of course, if you have any concerns about your budget then work with your partner to find out if you can plan out your wages according to your house needs.

How to alleviate debt through consolidation

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The idea of owing money is a scary thought and can give people anxiety when thinking of all the money that needs to be paid out to different agencies. You may have student loans, a mortgage and car repayments to consider in your monthly budget, making it hard to keep up with who you owe money to and what date it needs to be paid. Many people have started consolidating their debts to make life easier and to ensure they are all paid on time. If you are having difficulty keeping up with the repayments from multiple debts, refinancing and consolidating your loans can save you money. Speaking to your lender can provide an insight into lower rates available and how to go about combining multiple debts into the one repayment.

Before signing anything, it is important to consider the costs of refinancing, and calculating whether they are financially viable and compliment your lifestyle. Some providers may charge exit fees to transfer an existing loan to a new provider, making it a costly expense. There is also the chance that by consolidating your debts, it could take longer to pay off. However, this can be avoided if you choose to make additional payments on top of the required repayments. Through certain providers, this making additional repayments will lower your interest rates.

So now you know some of the things to consider when refinancing your loans, the question many people are left with is what are some of the best debts to consolidate? Take a look at some of the types of debts that can be consolidated.

Credit Card
If you have more than one credit card, it could be a good idea to combine the debts into the one. Most major banks offer a balance transfer when transferring the debts from other providers. By consolidating your credit card debt you will ease your anxiety over the multiple payments that need to be paid, and only need to pay one bill instead.

Student Debts
Student debts are painful and often feel never ending. If you are looking to change your variable interest rate loan to a fixed rate loan, lower your monthly payments, or consolidate multiple loans into one easy payment it may be time to think about consolidating your student loan. To understand and calculate the best rate you can use a tool such as a student loan debt consolidation calculator.

Paying the deposit on your new home is an exciting time, and often the interest rate of the mortgage can often be overlooked. More often than not, home buyers will loan from the bank without considering their other debts. If you are considering refinancing your mortgage, speaking to a mortgage broker about consolidating your mortgage with other debts can help you find the best rate.

After careful consideration, you my choose to go with a provider you are familiar with, or someone that offers better interest rates than you currently have, but consolidating your loans into one is sure to save you time talking to multiple providers and save you money by not paying multiple interest rates.

Pico Financial Teaches You How To Escape The Debt Spiral

How to Escape the Debt Spiral

Most people endure harsh financial times at some point in their lives, when there simply doesn’t seem to be enough money to go around. With luck, these circumstances will be survived through a period of belt-tightening. In other less fortunate cases, debt becomes a vicious circle, with more and more borrowing needed just to survive. Eventually, this can mean serious risks such as losing a home become all too real.

When things get to this stage, it can be hard to see a way out, but there are still steps you can take to escape the spiral.

First, Examine Your Budget

The first step towards achieving financial stability is to take a long, hard look at your budget and see if any positive changes can be made. This isn’t a pleasant activity for most people with money worries, but it’s an essential step to take. Without this, any other efforts to tackle your debt problems will only be a band-aid rather than a possible solution.

Are there any areas in which you can cut back spending? Is it possible to earn a little extra income in some way? Which debts are causing you the most problems? What bills need paying most urgently? Addressing these questions will put your finances on a sounder footing even if they don’t directly solve your difficulties. With the basics in order, you can now move on to a more proactive solution.

Debt Consolidation

If your budget has little leeway for improvement, and your debts are still too large to be handled, then debt consolidation from Pico Financial of San Diego is a popular option that has a good chance of success. The basic idea is to combine all your existing debts into a single larger one, by taking out a loan to pay off all your other borrowings. If done correctly, by ensuring that the new loan is at a lower rate or repaid over a longer period, your monthly repayments will be reduced to a much more manageable level, even though your overall debt level will not be reduced.

Enter a Debt Management Plan

Unfortunately, debt consolidation isn’t an effective solution for everybody. It could be that your debts are simply too huge to be dealt with in this way, or maybe by this stage, your credit rating is so shot that being approved fora new loan simply isn’t a realistic option. In this situation, entering into a debt management plan is the next step to consider.

This involves an admission that your debt situation simply isn’t sustainable and drastic changes are required. By contacting your creditors and explaining that you have no realistic way of keeping up your repayments, you may be able to restructure the debt to make it more affordable. This may be through lengthening the repayment term, reducing the interest rate, or even freezing any further charges to give you a chance to start repaying the principal.

This course of action relies on the cooperation of your creditors, and for this reason, it’s usually a sensible idea to use a debt management agency to carry out the negotiations on your behalf. Their experience and lack of emotional involvement usually lead to more success. although you may have to pay a fee for the service. Free credit counseling charities can also help, but their resources are often limited.


If debt management hasn’t solved the problem, personal bankruptcy may be the only option left. This process needs to be handled by an attorney, and it comes in two basic forms. Chapter 13 bankruptcy is suitable for higher-than-average earners and allows you to keep hold of some assets such as your home or car. Chapter 7 is the more common form of bankruptcy and will use all your available assets to clear as much non-government debt as possible. In both cases, your credit rating will be completely shattered, but by the end of the process, you will be freed from your debts.

The best way of avoiding debt problems is not to borrow in the first place, but this will be cold comfort for anyone struggling with unmanageable repayments. Taking control is the only way to escape the spiral, whichever of the above paths you need to follow. One thing’s for sure, if your debts are causing you severe difficulties, it’s better to take action now as the situation is only likely to get worse if you ignore it.

Why Debt Consolidation and Credit Counseling ARE For You

Why Debt Consolidation and Credit Counseling ARE For You


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Usually when you see something recommended on the internet, the place recommending the thing doesn’t push too hard. “Such and such MIGHT be for you,” the phrase always goes. But when it comes to debt consolidation and/or credit counseling, there really are no Ifs, Ands, or Buts about it. Learning about credit, while killing off your debt – there’s simply nothing better you can do for you financial future. If you are not already debt free or the expert in your friend group on credit, you’ll do well to start changing matters immediately.

Vantage Acceptance is the company that can help. Vantage helps people with credit and debt problems. For the former, they have credit counseling services which can help you understand the inner workings of your credit score. They’ll also show you how different levels of credit health will influence every aspect of your financial future. By the end of your learning process, you should be equipped with knowledge that can make your credit score shoot up fast. For people with debt problems, Vantage takes an entirely different approach, one that has them acting more as a financial entity than educational resource.

This method is called Debt Consolidation. Largely unknown in the rest of the world, debt consolidation is a loan meant to cover all of a consumer’s debt all at once. To make this a little more clear, let’s look at a made up example:

Let’s say you’re Pete. Pete has 7 credit cards, all carrying various levels of debt and with different rates of interest and fees. They all have different monthly payment-due dates, and each of these monthly minimums is a different dollars amount. It’s a lot to keep up with an it’s incredibly expensive; Pete’s most expensive credit card costs him 25.9% of the balance each year, just to pay for the privilege of having borrowed that money (as well as to cover the risk carried by the lender that Pete might just NEVER pay the money back).

Pete approaches Vantage and asks for help with debt consolidation. They look at the $42,394 in debt spread out across his seven credit cards, and issue him a loan that lets him pay it ALL back at one time. Pete is ecstatic. He doesn’t have credit card reps calling him at weird hours, threatening to sue him if he doesn’t make his payment. Now all he has to worry about is paying one monthly payment to one company (Vantage). The best part is that the yearly interest and fees are MUCH cheaper. Vantage customers often pay less than 10% annually, allowing them to kill off their debt faster, without accruing much more in the meantime.

Surely, you are in one situation or the other. You either need to understand credit better (credit counseling) or you need someone to help you climb out of the debt hole you have fallen into. Vantage is a one-stop-shop for all such credit needs, and they can get you back on the right track faster than you thought possible, if you even thought it WAS possible.

Infographics: Tackling Debt Like a Pro

The average American household had over $15,300 in debt in 2015. Credit cards, which often carry high-interest rates, accounted for about $5,747 of that debt. Considering that the average household earns about $54,500 per year, this is a sizable amount that can make it nearly impossible for people to free themselves from debt.

The problem with debt becomes more pronounced when you look at how much interest consumers pay. The typical credit card account charges over 15 percent. People with bad credit face even more difficulties since lenders charge higher interest rates to protect themselves from default. If you have bad credit, then there is a good chance that your credit card company charges you over 20 percent in interest. That adds up quickly.

The good news is that not all credit comes with high-interest rates. Secured credit, such as mortgages and auto loans, are often considerably more affordable.

Still, having a large amount of secured credit can negatively affect your credit score. That means you may have to spend higher amounts on car insurance and deposits for utilities. To put it plainly, life is difficult for people who have large amounts of debt, whether it’s secured or unsecured.

These numbers show that many Americans clearly need to find more effective ways to eliminate debt from their lives. Otherwise, they could continue to lose money to higher expenses and interest payments.

Not all is lost, though. By taking a strategic approach, you can take control of your debt to lower its impact on your life. The right approach will even help you pay it off completely.

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Best ways to achieve credit card relief – Know more

For a household it’s not good to share credit card burden. Credit card debt can be repaid or lessened in a number of ways. A few methods will demand more effort and time than the common ones. In comparison, you may come across methods that don’t seem effective as repayment options; these methods tend to be a little riskier.

A borrower needs to study his specific financial situation and whether his chosen debt repayment method is ideal for his situation. Only then he will be able to opt for a successful debt repayment plan. This article throws some light upon the most advertised repayment methods besides the usual ways of lowering one’s credit card debt.bigstock-Debt-Relief-Just-Ahead-Green-22963049-e1368042855375

Once a borrower is able to study his financial situation carefully, he’ll soon be able to identify expenses that he can actually do without. It will surely help him develop a budget so that he may pay off his debt in a systematic way. Although things won’t change overnight, but with time he will be able to save more out of his income. A borrower needs discipline, patience and time to acquire

Under such circumstances you’ll need to follow a different path. You may need to opt for a credit card relief program. Such a program mostly involves indulging in a repayment plan.

A credit card relief program is a repayment plan between a credit card company and the borrower. Depending on your credit card interest and balances, you’ll be offered repayment plans. Then there are other factors like your expenses and incomes that affect your repayment terms.

An effective credit card relief program makes it necessary for you to remember the following points

Guaranteed Debt Relief

There are situations wherein you’ll be able to settle your debt for a lower amount or lower the interest rate through negotiation with the creditor. Credit card companies are usually not willing to negotiate interest rates with their borrowers unless they are payment defaulters. They will only accept a settlement offer if they’re certain that the settlement will yield more returns than what they would get after filing a lawsuit. Entering into a credit card debt relief program helps a borrower as these services involve experts that are experienced in negotiating with creditors and achieving the best deal.

Free Credit Analysis

The credit counselors associated with credit card debt relief programs will offer a credit analysis for free. They will evaluate your expenses and incomes for each month and decide on a monthly payment for you. It is a single amount that you ought to pay them based on your ability. Once you make your monthly payments, they will pay a certain amount to each of your creditors after deducting a small fee as their processing charge. You’ll soon see your balances getting reduced or your interest rates falling after you enroll with these programs.

Seek Your Consumer Rights Advantage

The Fair Debt Collecting Practices Act strictly forbids consumer debt collection through abusive means. Under this act debt information needs to get validated for ensuring its accuracy, showing a disputing option to consumers and to improve the collection methods. Business of debt collection can now be conducted as per the guidelines set by this act.

Stop Collection Calls

A collection agency can’t call you anytime they wish. They have to follow the FDCPA guidelines alongside the FTC norms. The collections agencies can’t call you beyond the business hours and they can call you at work. They can’t share your financial status with any other person. Once you’ve enrolled with a credit card relief program you may always ask them to confront your credit counseling team. You’ll no longer have to handle their calls by yourself.

Get out of debt now, repair your credit and opt out of bankruptcy

Under circumstances when you undergo serious financial crisis, you don’t much time to consider the paths that lie ahead. Whatever you do, you shouldn’t consider filing for bankruptcy since it will hit your credit score and the effect will be shown in your credit report. It will haunt your finances for 10 long years.

It takes a long time for someone to improve his credit. Your credit score can actually be improved only when your credit history is rebuilt. Your credit score is affected by every delinquency that is reported. Your credit history will determine how much time it will take for these negative instances to be removed from your credit report.

Debt Consolidation: A Few Pros And Cons Explored

The decision to opt for student debt consolidation should be factored on several crucial points. Financial experts often opine that it is better to steer clear of this method of debt management since (even with the smaller repayments) you end up paying much more than what you are paying on the several loans that have been consolidated in to one single payment. The repayment period is generally longer in case of debt consolidation and as such you end up paying more in the long term. On the other hand, since you’re down to one single consolidated debt from several ones, it becomes easier for you to keep track of your repayment.

Let us learn more about the merits and demerits of this phenomenon. However, even before delving into further details, it’s wise to remember that even if you’re opting for consolidation, you should take due care in going through reliable Services review in order to determine which debt consolidation program you should opt for.


If you have loans with multiple lenders or creditors and it becomes difficult for you to keep track of the payments to be made by you, you can resort to consolidation that helps you bring all your debts under one umbrella loan (for which you are answerable to only o5025164562_6af1ac753c_nne lender). Therefore it becomes easier for you to keep track of your payments.

Since the repayment period is longer, you can repay smaller amounts.

You can look forward to reinstating all your loan benefits like eligibility to apply for financial aid, deferments etc after you have made satisfactory arrangements for loan consolidation. Actually most of these benefits are removed once your debts are placed in default- but after opting for consolidation (i.e. when you’re placed out of default) you can look forward to the reinstatement

There generally are no application processing fees or prepayment penalties

The money that you’re saving up each month can be used for paying up other important dues like utility bill, rent etc- in short—- there is substantial improvement of cash flow with all your debts being consolidated


There are chances that you might not qualify for the same deferments on your consolidated debts as those which were applicable on original loans

If you are including Perkins loans in the consolidation then you might end up losing the chance to qualify for certain forgiveness programs

As already mentioned above, a longer repayment period would eventually mean that you are paying up more in the long term


Its important to weigh the pros and cons carefully before opting for a consolidation program. Consolidation- it’s often opined – should be your last resort. If you’re struggling with your existing debts then you should first have a word with your bank or credit union. Find out if your family can chip in with help or not and then consider seeking the aid of consolidation.

Prioritizing Your Debts: It’s Why And How

The citizens of the United States of America are working really hard to fight their present debts. According to the Federal Reserve Bank of New York, the overall burden is plummeting with debt reduction around $100 billion in less than a year. This, without a doubt, is a positive sign. However, it should be noted that your responsibility does not end with the cutting down of debts. You should be able to manage your remaining debts in a proper fashion. Your debt prioritization should include calculative measures such as:

  • Making your repayments on a timely manner
  • Targeting your higher rate debts first
  • Avoiding unnecessary expenditures as much as possible

However, borrowers are often confused about which loans to pay back first. This acts as a stumbling block in the way of getting rid of these debts. But fret not! Here are some effective ways to prioritize your debts or paying off your loans in a smarter way.

debt problemsHow can you prioritize your debts?

The loans (handled by you at present) which are to be paid first are called “priority debts.” These loans are not necessarily the ones which carry high rates of interest. Think what you’re going to lose if you don’t pay up the loan. If you are not keeping at par with your mortgage loans then you’re likely to lose your home. If you haven’t paid your fuel bills you might as well find your electric connections cut off. Non-payment of some debts might even result in court summons as well.

Here’s how you should arrange your payments

  • Mortgage or any debt obtained against your home
  • Council tax
  • National Insurance, Income Tax
  • VAT
  • Child maintenance
  • Electricity bills
  • Council tax
  • Court fines (if any)

You might as well opt for a reliable debt consolidation service in a bid to bring all your debts under one umbrella debt. The rate of interest applicable on the remaining debt would be less than that what you were paying before. It not only aids you secure lower rate of interest but also lets you track your loans in an easier fashion. But, exercise due prudence in consulting the top ten reviews of the debt consolidation service providers before settling for one of them.

One of the most effective solutions in this regard would be to turn to a financial advisor as you find that you have been consistently unable to pay your debts off. Don’t wait until you lose your home or are compelled to declare yourself a bankrupt.


Make sure that you’re adopting a methodic approach towards your financial responsibility. Even if you are turning to professional debt relief or consolidation services, you yourself should sit down with all your statements, receipts, and dues in order to calculate how much you’ve paid and how much you owe. Consider the rates of interest and late fees on each of your debts. This will help you estimate whether at all you are paying up lower rate of interest after opting for consolidation or not. Additionally, you would be able to get an idea of if you would be able to repay them or not.

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