Don’t know how to handle all of your bills? If you are having a hard time managing all of your bills and your debts, then you may want to know how to consolidate bills to help clear your debts.
With bill consolidation, the creditor may be willing to reduce the interest rate on your debts to make it easier for you to pay off your bills. There are two type of bill consolidation.
This may be a good option if you want to pay off your credit card bills, medical bills, utility bills, store cards and personal loans. However, if you are looking for ways to settle your secured debts, then this is not the option for you.
In the bill consolidation program, the debt settlement and consolidation services company will give you a free debt counseling session in order to evaluate your financial needs. They need to find out how much you really owe and how much you are earning each month in order to determine how much you can afford to pay.
They will then negotiate with your creditor to lower your interest rate or to waive the late fees in your account. You then make monthly payments to the bill consolidation company and they will distribute your payment to your creditors.
Your other option would be to apply for bill consolidation or hardship loans. This way you can consolidate debt into one payment instead of making several payments every month. Usually, these loans have lower interest rates compared to the average interest rate of your bills.
Deciding on which of the two options would be best for your needs would be up to you. If you are not comfortable getting another loan, then the first option may be ideal for you to consolidate debt into one payment .
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