Consolidate Debts

Consolidate Debts

Considering ways to consolidate debts? It's a smart idea.

Consider the Options

There are two really good ways to consolidate debts. One you can do on your own, and one requires help from a debt consolidation company. To consolidate debts on your own, you first need to tally up how much you owe. Write it down, then begin your search for a credit card that has the following features:

• A 0% introductory period (the longer that period, the better)
• No annual fee
• No balance transfer fees

When you find one that fits the bill, transfer all your other balances to it. Ideally, you'd try to have that balance paid off during the introductory period, but if that makes your payment too high, you'll have to find another card with a 0% introductory rate and just keep doing that until that balance is paid in full.

If this isn't a feasible option for you, you'd be wise to consolidate debts using a debt consolidation company. There are actually a lot of benefits to this. First of all, they will contact your creditors to get your balances reduced through interest rate reductions and possible removal of past fees. Then they will consolidate these new, lower balances, and they'll take your monthly payment you make to them and divide it among your creditors. Because of the reductions, you can be out of debt in five years when you consolidate debts in this manner. Not to mention the fact that your creditors will be required to stop calling you about your accounts (if they're doing that). Another benefit to consolidating debts in this manner is that after a few on-time payments, your debt consolidation company will ask your creditors to report your account as current instead of late or past due, thereby improving your credit immediately! What more could you ask for?

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