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Borrowing Money to Consolidate Debt
Debt consolidation is usually done by taking out a big loan to pays off other smaller loans. This is called a debt consolidation program. Debt consolidation programs can be very beneficial to borrowers, but may also put you at risk of...

Consolidation Debt For Newbies
Consolidation debt to help get you out of the quagmire Will you agree with me if I tell you that, the key to financial success is to live within your means? This is an old belief that modern day income earners have completely forgotten. This is...

Debt Consolidation Plan - Your Way Out Of Debt
A debt consolidation plan be the solution to getting out of debt. Getting into debt has never been easier than it is in today's society. No one wants to wait until they've saved the money to buy the things they desire. Even though a debt...

Eight Ways to Consolidate Debt
Next to winning the lottery, a debt consolidation loan is a debtorís dream. With one monthly payment and a fixed monthly payment schedule, you can actually see an end to those monthly payments. In reality, consolidating bills isnít always...

Free Debt Consolidation?
Chances are, when youíre reading this article, youíve typed this particular set of keywords in the search box: free debt consolidation. And without a doubt, a number of articles came out as a result, this being one of them, or else you just happened...

 
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Debt Consolidation - Types Of Help Available For Unsecured Debt Consolidation

There are several types of help available for unsecured debt consolidation. You can choose to take out a debt consolidation loan to lower your rates and payments. You may also choose to use a debt consolidation programs, letting a third party deal with your creditors. And finally, you can turn to a credit counselor to help you find the best plan for your situation.

Debt Consolidation Loans

A debt consolidation loan is any type of loan you take out for the purpose of paying off other creditors. Ideally you want to find a loan with lower interest than what you are currently paying on your bills. However, even if you don't lower your rates, you can lower your monthly payments by choosing a long term loan. The drawback of course is paying more in interest charges.

You can choose from a secured loan, usually backed by your home, or unsecured loan. Secured loans, including a home equity loan, second mortgage, and line of credit, will have lower rates and the tax advantage of writing off your interest payments. However, if you don't have a home, you can still find relatively low rates with a personal loan.

Debt Consolidation Programs

You can also work with a debt consolidation program to lower your rates and


consolidate your bills. This third party agency will negotiate lower rates with your creditors for a small fee. You also only make one monthly payment, letting the agency pay your bills from that sum. Some non-profit agencies also specialize in helping those with six or more months of late payments.

Before you sign up with these types of programs, be sure you have researched several agencies. Compare pay back dates, fees, and estimated monthly payments.

Credit Counseling

If you are confused about your options or just don't have a plan for getting out of debt, consider visiting a credit counselor. As a non-biased person, they can explain your financial options. They can also discuss with you're the pros and cons of each options, helping you find the best program for your unique situation.

Besides helping you to consolidate your bills, they can also help you develop a monthly budget and long term financial goals.

About the author:

See my recommended Debt Consolidation companies online. Carrie Reeder is the owner of ABC Loan Guide, which offers help with loans for people with low credit scores. scores.