|Reduce Your Debt - How To Use Debt Consolidation To Get Yourself Out Of Debt Permanently
Debt consolidation can get you out of debt permanently if you
make it part of a financial plan. Within five years, you can
have your unsecured loans paid off and on your way to debt-free
living. The key is to plan for the future.
Get Your Bills In Order
If you are in the hole with debt payments, then debt
consolidation may be your way out. Debt consolidation programs
lower your interest rates on unsecured loans with creditors.
With their low fee, they handle payments, account paperwork, and
direct dealings with creditors. All you do is send them a
monthly payment for all your consolidated bills.
Initially, you will see a slight drop in your credit score,
eliminating your ability to apply for more credit. However,
within two years you can apply for credit as lenders see your
commitment to repaying loans. You can even apply for a mortgage
loan at this time.
To make sure you are betting the best deal, shop around for a
debt consolidation company. Request quotes on fees and
information on their services. While you want the best deal,
don't be lured by false promises.
Pay Bills Faster
Once you have one account paid off, apply that monthly cash
toward another account. Not only
will you be paying off your
bills sooner, but you will be saving money on interest payments.
Also consider applying any refunds or bonuses toward your bills.
Also, look for ways you can cut spending, even if just
temporarily. Cell phones, cable TV, or eating out can all be
reduced or cut out. It is difficult, but keep your eye on your
goal of being debt-free.
Plan For Your Future
It is not enough to get out of debt, you also need to plan for
your future. You may find a credit counselor can help you create
goals and design a budget. You can also find a lot of good
information on finances online or through books.
One of your future goals should be creating a financial safety
net. Even while you are paying off debt, you should be saving
money every month. While a job loss or a major illness can't be
avoided, you can minimize their financial impact by being
proactive with your finances.
About the author:
See my recommended Debt
Consolidation Companies online. Carrie Reeder is the owner
of ABC Loan
Guide, an informational website about various types of