The best debt consolidation for consumers is to never get into debt in the first place, but since this is not realistic we will explore other means. Our approach is to list a few debt consolidation techniques and depending on your own situation you may find that one or more of these will work for you. The reason that we are taking this approach is that consumers have a variety of incomes, debt levels, debt payments, interest levels on debt and of course their credit ratings will vary as well. If your credit rating is not good for example, finding a lender to lend debt consolidation money to you will be almost impossible and if they do the interest rate and fees will be high.
Best Debt Consolidation for Consumers – Solutions
The following are steps consumers can take to get their debt under control. Use these singly or in combinations as appropriate for your situation:
- Always meet your monthly payment requirements to maintain credit rating
- Use extra money to repay high interest debt first
- Take out a low interest loan to pay off high interest debt
- Do away with credit cards
- Avoid new debt until existing debt is fully paid
- Ask entire family to pitch in to decrease monthly costs and pay off debt
- Use equity in your home to secure a low interest mortgage and pay down debt
- Never make a purchase on a credit card if you cannot pay in full at the end of the month
- Reduce the number of credit cards you have to no more than two
- Talk to your creditors and explain how you will meet your debt load
- Never miss a payment
- Never declare bankruptcy
- Take an extra job
- Take a serious look at your monthly expenses and make reductions
- Develop a budget and balance your expenses to your income
There are potentially lots more. But if you are going to take debt consolidation seriously, these items above are at the top of the list. Most people are looking for a quick fix answer. Unfortunately there are none, especially if you want to keep / improve your credit rating.