There may come a time in your life when you feel you are up against it financially. At such times, you look at your many debts and wonder how (if ever) you are going to be able to repay them all. This has happened to most of us at some time in our lives and it's still happening to many people around the world daily.
In each household, there are various bills to pay which will seriously affect the way we live our lives if they are left unpaid. These include mortgage, loans, credit cards, car repayments, gas and electricity - just to name a few. Very often we are up to our necks in these debts and often they have serious repercussions on our health and mental states.
Usually we would want nothing better than to get rid of these debts that is tormenting us so much, but HOW, just where do we go for a reliable and effective debt credit consolidation? At the best of times, most of us would have no clue where to start.
In each household, there are various bills to pay which will seriously affect the way we live our lives if they are left unpaid. These include mortgage, loans, credit cards, car repayments, gas and electricity - just to name a few. Very often we are up to our necks in these debts and often they have serious repercussions on our health and mental states.
Usually we would want nothing better than to get rid of these debts that is tormenting us so much, but HOW, just where do we go for a reliable and effective debt credit consolidation? At the best of times, most of us would have no clue where to start.
Well, the best place to start could be picking up the phone and calling all your creditors. Generally, most of us are so angry with our so-called lenders that we simply don't want anything to do with them anymore. The mere thought of speaking to them on the phone can even make you sick sometimes because you now see them as the devil himself for putting you in this impossible situation you now find yourself. But believe it or not, it's often better to stay on their good books for the life of your debt with them.
Give them a call explaining your situation and the difficulties you have that is preventing you from making the agreed payments as expected. If the person you are talking to is not being very helpful - as they can often try to make things difficult for you - demand to speak to the manager or someone in a more senior position. Ask them for assistance with your debt credit consolidation, which is just a way of rolling all your debts and credits into a single large debt with improved rates and conditions.
This may sound crazy to you because instead of getting rid of the smaller debts, you are now faced with a seemingly larger debt. Believe me this practice is very helpful because it allows you to renegotiate lower monthly repayments and also lower interest rates on your new larger debt. More importantly, you now have only one dragon (creditor) to deal with instead of being pulled in many different directions by angry lenders. Also you have much less to pay monthly, a lot less stress and you'll surely sleep better at night.
Consolidating your debt has many advantages, one of which is the fact that you can save a lot of time and money as you will no more be paying those high monthly instalments for your different debts. So when would be the right time for you to consolidate your debt? Consider taking this step when you start feeling that you have no more hope in paying off all your debts; when your creditors are already making your life miserable by calling your mobile and home phones nonstop every hour of the day for the repayment of your debts.
As much as I will suggest you try to consolidate your debt yourself through your bank, there are many companies offering credit debt consolidation services and it should not be hard to find one. They can possibly do it better as this is all they do, but you have to approach this with extreme caution because not all these companies are above reproach. Some of them cannot even be trusted to serve your interest the way you'll want it.
So don't be pressured into rushing to get debt consolidation services just because you badly need a way out of your bad debt situation as this would only lead you into making one bad financial decision after the next. Try and shop around for the best service for your particular situation and seek further advice from financial experts. Such advice is freely available locally and there are government agencies that can point you in the right direction.
When you do take out a debt consolidation loan eventually, make sure it comes with lower interest rates than your previous debts. You also have to ensure that you don't replace your old unsecured loans with a secured loan that needs you to provide some sort of expensive collateral.
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