Moola Days

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Should You Opt for Debt Consolidation to Pay Off Your Dues? Posted: 10 May 2011 07:42 PM PDT There are various ways in which you can shun your debt and debt consolidation is one of them. Debt consolidation helps you to lower the interest rate on your debts and helps you to lower the number of debts that you are required to handle. Handling several debt payments at the same time is quite a tough problem. So, many people opt for debt consolidation. But before you opt for debt consolidation, there are some important things that you should know about the process. Why debt consolidation Debt consolidation as said above lowers the interest rate on your debts and so making the debt payments becomes easier for you to make the payments. Moreover, the number of debt payment gets reduced to only one. So, it becomes all the more easy for you to make the payments and thus most of the people opt to consolidate their debts. Debt consolidation can be achieved of your own or else you can also try to get the help of a consolidation company. But you should know that there are other debt relief options too and debt consolidation cannot be the only debt relief option for one and all. This is because the debt situation is different for different people. Debt consolidation is mainly for those who are in a non-so hard financial situation; for those who finances may improve within a few months or years. If your finances are in greater distress, and if you have already missed many payments, it is better for you to try debt settlement. This is because, through debt settlement, the outstanding debt amount lowers. Thus, it is a much more easy option than debt consolidation. Another important option is bankruptcy. You will have to consult a credit counselor and a lawyer to find out if your situation is in worse shape and if bankruptcy is your only option. Bankruptcy should be your last debt pay off option as it gives you a fresh start. If your debt situation is such that debt consolidation won't be able to help you to pay off your debts and not even debt settlement can help you out of your debts, if you think that you are unable to make your ends meet, bankruptcy can be your debt relief option. Thus, before you opt for debt consolidation, it I better to consult a credit counselor or a lawyer who will help you in assessing your finances and budgeting. If you find that simple budgeting and savings can help you to make payments through debt consolidation, you can opt for the same to free yourself of the evil called debt. Some strategies to be followed If you opt for debt consolidation it is also important for you to follow some strategies that can help you to successfully pay off your dues through consolidation. First of all, in case of consolidation through balance transfer, you should check with the terms and conditions of the credit card company in regards to balance transfer. If you are going to transfer the balance to a new credit card that is offering you 0% interest on balance transfer, you should try to pay off the debt within the offer period, the offer period generally lasts from 6 months to 1 year. Other than this, if you think that you will need help in consolidating the bills, it is better to check with the authenticity of the company first. It is important for you to check if the consolidation company is accredited with the Better Business Bureau or the BBB, if there are any consumer complaints against the company and whether or not the company had taken any kinds of steps in redressing the customers. Should You Opt for Debt Consolidation to Pay Off Your Dues? is a post from: Moola Days

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