Has debt taken over your life? Do you want to control your debt? If so, debt consolidation may be for you. The following information can help you when it comes to debt consolidation. You’ll get on the path to financial freedom with these tips.

TIP! Debt consolidation is a long-term plan. You want a company that is willing to work with you later on as well as in the short-term.

Make sure the counselors working for a debt consolidation service have the proper qualifications. Find out whether these counselors contain certifications from reputable organizations. Is your counselor legitimized by working for a reputable company? This is great for figuring out whether the prospective company is one that you should deal with.

When choosing your debt consolidation company, look at the big picture. You want work done now, but will they company be there in the future? This will help you improve your financial situation tremendously.

TIP! Don’t choose a consolidation firm because they are not-for-profit. Non-profit doesn’t mean you will get the best service.

Speak with your creditors when you’re about to do business with a credit counselor or a debt consolidation business. There might be a compromise that they are willing to work out with you. This is essential, since they would otherwise be unaware of the steps you are taking. If you show them you are trying, they might want to help you out.

It’s not uncommon for most people to learn that simply making a phone call to their creditors to get payments lowered actually works. Many creditors are more than willing to work with consumers to resolve their debt situation. Just give them a call and ask if you can have your interest rate fixed and the card cancelled.

TIP! Make it known to creditors if you use debt consolidation. They might be able to negotiate something with you.

If you’re struggling financially, you may want to think about filing for bankruptcy. Whether it’s Chapter 13 or 7, it will leave a poor note on your credit. But, if you have no way to pay down your debts and you’re missing payments, your credit could be irreparable already. When you file for bankruptcy you will have a fresh start.

It might be possible to withdraw money from a retirement fund or 401k to pay down high interest debt. You’ll need to repay the money to your retirement account though, so make sure you take that into consideration first. You will be required to pay tax and penalty if you cannot.

TIP! Sometimes a simple call to creditors can help you get a lower payment. Many creditors are happy to help debtors who are trying to pay off their debt.

You may decide not to consolidate all of your debts. If you have debt on a charge card that doesn’t charge interest, then it wouldn’t make sense to switch it to one that has a higher rate of interest. Go through each loan with the lender to make wise decisions.

Attempt to locate a solid consumer credit-counseling office near you. This type of office can assist you into combining your accounts in order to better manage debt. Using a counseling service doesn’t hurt your overall credit score like using a professional debt consolidation service might.

TIP! Refinance your home to help get you in the clear with your debt. Mortgage rates are generally lower than consolidation loans, making it a great option for homeowners.

You need to look for certified counselors when you are selecting a debt consolidation agency. The National Foundation for Credit Counseling is a great place to check first. Doing so will give you confidence in your decision and choice of company.

Some consumers choose to consolidate debt by accepting a loan from a friend or family member. However, keep in mind that this can be dangerous because if you do not repay the money, you can destroy your relationship with this person. This is a way to actually pay down debt, but it really ought to be a last resort. Only go down this road if you know how and when you can pay them back.

TIP! If you’re not able to get money from places, you should see if a loved one is willing to help. If you do this, ensure you specify the amount you will need and the timeline that you can pay it back.

So why are you in so much debt? You must determine this before taking out a consolidation loan. Without proper treatment of the cause, attacking the symptoms does little good. You will be able to pay off your debts only after you have stopped the behavior that caused the debt in the first place.

Choose a company that is within your geographic location. Sometimes, a state will not even require credential to open debt consolidation companies. It is important to ensure that the company you choose is not located within these states. It’s not hard to locate this information.

TIP! See if your prospective company employs certified professionals. The NFCC will tell you whether or not the company is reputable with counselors that are certified.

When trying to consolidate debt, the goal is to be making one payment each month that is affordable. Typically, you should have a plan where your debts will be eliminated after 5 years. Some individuals chose shorter or longer plans for getting out of debt. That way, you will have a set goal and a workable time frame.

Debt consolidation agreements in the context of Chapter 13 bankruptcies may help you hang onto real estate. If all debts are paid within a three- or five-year period, you can hold on to your real or personal property. This process may even eliminate all the interest you owe on your debt.

TIP! A good way to consolidate debts is to secure a personal loan. Remember that your relationship can become jeopardized if you do not pay the money back.

As this article has taught you, you can do a lot if you’d like to consolidate your debts. These tips are a great beginning for helping you understand the debt consolidation concept. Apply what you’ve just learned, and get on the road to a better future.