Bad debt can sometimes happen to good people. Most of us have experienced financial hardships at some point in our lives. And there are times you need to rely on credit cards to make ends meet. All too often these credit cards and lines of credit can become a crutch. Suddenly, circumstances change and you find yourself underneath a pile of debt you can’t climb out of. Debt consolidation may be the way out.
There are two ways of consolidating your debts. The first is a Debt Consolidation loan. A debt consolidation loan uses the equity in your home or anything else you own of value to secure a loan to pay off your other debts. Instead of making multiple payments you have one consolidated loan payment. This is an alternative to bankruptcy if you have significant equity. If not, your second alternative is a debt repayment plan. You will need to secure the services of a credit counseling service. This service can set up a debt management plan where you make one monthly payment to them and they will apportion out payment to your creditors.
Both alternatives will allow you to combine all your monthly bill payments into a single payment. As a cautionary measure you should always check the reputation of the service you are considering. You may also contact a bankruptcy trustee for free and confidential advice.