Debt consolidation - Should you get advice or do it of your own?

Debt consolidation is one of the debt relief options that help you pay off debts with ease. Amongst the different debt relief options, if you opt for debt consolidation, you will not only be able to pay off your debts, but also may be able to improve your credit. Debt consolidation mainly helps in lowering the interest rate on your debt. In addition to this, if you have several debts and if you opt for debt consolidation, it helps in rolling together the unsecured debts you have into a single large debt. So, while consolidating the debts or bills, is it necessary for you to get advice?

Do you require consolidation advice?

In order to consolidate your bills, there are various things that you can do. The best way to consolidate your debts is through balance transfer. If you would like to transfer the balance from the credit cards that you have, you will have to have a credit card with relatively low interest rate. Or else, you can also try to obtain a new credit card offering 0% on balance transfer.

Other than this, you can also take out a debt consolidation loan with low interest rate. This is going to help you consolidate the debts so that you can pay it off with ease. If you have had a good credit, you may be able to get a loan at really low interest rate.

However, when you consolidate the debts, the other accounts become empty. As a result, you may think of closing down the accounts. But, you may not be aware of the fact that if you close down the accounts, you may end p hurting your credit. This happens because, when you close down accounts, the total credit limit available lowers significantly. But, in comparison to this, the credit usage becomes so high that it results in negative effect on your credit.

This is why you may require some amount of credit and debt consolidation advice. You will be able to get proper advice from an authentic debt consolidation or debt management company. You will also be able to get good advice from the online debt help forums.

When you go to a consolidation or management company - a good one - it is supposed to offer you free counseling. As this happens, you are able to learn a lot about managing your credit and your debts. This can also help you learn that if you close down accounts it can backfire into hurting your credit. So, you will be able to learn properly as to how you should go about consolidating your debts. Moreover, this is also going to help you in learning as to which form of debt management is going to help you incurring huge debts in the future.

If you participate in a debt help forum, form there too you may be able to get good advice regarding consolidating the bills. There are forums where various financial experts participate. So, this may help you in getting most of the answers to different debt related queries. This way, you will not only be able to properly consolidate the debts but will also be able to improve your credit in the process too.

How can you get authentic debt consolidation advice?

In order to get authentic debt consolidation advice, you will be required to go to an authentic consolidation company. An authentic debt consolidation company is a one which is in general accredited by the Better Business bureau or the BBB. In addition, it should have a good BBB rating and no or may be really low level of consumer complaints. In addition, it should be a non-profit consolidation company and it should not ask for any forms of upfront fees.
About the Author : Ryan is a contributory writer and has written several articles for various financial websites. He holds his expertise in the Debt industry and has made significant contribution through his various articles.

[posted by : OFP on Feb. 16, 2012]

TAGS: debt, debt consolidation, advice

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