If you’re having problems with managing your monthly bills as well as all of the other loans, debts and so on that come due once per month or every few months and you’re still not at the point that you want to declare bankrupcy, well, there may be some hope for you yet because if there’s one industry that has developed well with the last few years of economic hardship it’s debt consolidation industry. Just what is that all about? Well, it’s a way to compress all of your debts and fees into one package with some benefits to you – maybe some of the debt will be written off, the fees for being late will be dropped, you will not be billed as much for the money transaction – there are plenty of ways that consolidating your debt can be helpful to you.
There are companies that are all about debt consolidation, and you have to be rather careful when you’re picking them, there are those that won’t do you much good, but do some research, read up on debt consolidation companies reviews online and you should have a pretty clear picture of what’s going on in your city and what company can help you out the most.
All in all, there are two forms of debt consolidation. One comes in the form of a debt consolidation loan, and it acts like a loan, turning your unsecured debts into secured ones, but you do have to put in some material asset as a collateral in case you start missing on your payments again. A home owner may have his house remorgaged, you can put your car in as collateral, and all of those assets will become property of debt consolidation agency in case you can’t stay afloat all over again, so think, and think a LOT before you go for this kind of debt consolidation.
Second is a true debt consolidation, just a way to compress all of your debts and merge them into one debt that you have to pay once per month, a bill that goes to the debt consolidation company which deals with your creditors directly, getting you the best deal they can.
Important thing to know is that this kind of debt consolidation and especially debt consolidation loan do show up in your credit rating report and it sticks for about 10 years, meaning your credit rating may suffer even before you start getting late with the payments. In the long run it shouldn’t have much effect if you keep paying back your debt with a reasonable pace and are not late for over 30 days, but when you start getting late, then it’s start to think about proper bankruptcy so you can fix your rating, because at that point it’s a downhill battle that many have fought but very few came on top of.