Is debt management getting the best of you? Do the bills in your mailbox cause you despair on a regular basis? If you are, you may find help with debt consolidation. The following advice will help you determine if debt consolidation is right for you and how to proceed.

TIP! Before considering debt consolidation, check your credit report first and foremost. In order to resolve your debt, you must first know how you got yourself in debt.

View your credit report prior to consolidating debts. You first have to know where your debt came from before you fix it. You need to know your debtor and the amount you owe. You can only fix your problem if you know these things.

Take a long term approach when selecting a debt consolidation company Make sure that they can help you tackle your current issues and those that may arise in the future. Some might help you to reduce risks and prepare for the future so you can avoid getting into trouble again.

TIP! Make sure the counselors working for a debt consolidation service have the proper qualifications. Are these counselors certified by any specific organization? Do they have certified counselors and a reputable history? You can compare the companies you’re choosing between this way.

Inform your creditors that your are working with a company to handle your debt consolidation. They may make you an offer so you don’t have to go this route. This is something you need to do because they might not know you’re trying to take care of your bills. Knowing you are attempting to make things better might help your case.

Interest Rate

TIP! Avoid choosing a debt consolidation company simply because of their non-profit status. Contrary to what you may believe, “non-profit” does not always equate to great.

Figure out how to formulate your own consolidation interest rate. An interest rate that is fixed is the best option. This makes sure you understand the exact rate you will always be paying. You definitely want to be leery of an adjustable rate plan. Often, they’ll lead to you paying much more for your debt over time.

Make sure you don’t borrow money from a company you haven’t researched. There are many loan sharks out there who might take advantage of you. If you’re trying to borrow money from somewhere to get your debt consolidated, you should pick out a company that has a good reputation. You should also be sure that they have a reasonable interest rate compared to what you’re currently being offered by creditors.

TIP! Consider borrowing money to pay off debt. Talk to the loan provider about interest rates you’re able to qualify for.

Take out a loan to pay off your outstanding debts; then, call your creditors to negotiate a settlement. Many creditors will accept as little as 70 percent of the balance in a lump sum. This will not affect your FICA score; it may even help it.

Assess which debts should be consolidated and which ones are better left alone. If you already have 0% interest loans, you don’t want to consolidate them. Go over each loan separately and ask the lender to help you make a wise decision.

TIP! Look for a debt consolidation loan that offers a low rate that is fixed. An adjustable rate loan will leave you guessing on what your payment will be each month.

Look for a credible consumer counseling agency in your local area. Such companies work to get your debt managed and combined into a single payment. Using a service that offers consumer crediting counseling isn’t going to damage your credit as much as a debt consolidation service.

Consolidation Company

TIP! Consider applying for a low interest credit card in order to consolidate debts. This can save on interest and leave you with just one payment.

Find a debt consolidation company that offers customized payment options. For many of these companies they go with one standard approach for everyone, however, this might not work for you because your situation could be different. For best results, choose a consolidation company that offers custom tailored payment programs. This type of plan appears more expensive at first, but it actually is more cost effective over the life of the plan.

See what a company’s privacy policy is like. Make sure your personal information is properly stored. Even ask if their system uses encryption to further protect your information. If not, then you run the risk of having your financial information available to unknown people. or even worse, your identity could get stolen.

TIP! While you’re in debt consolidation, think about the reasons you got into this position to begin with. You probably don’t want to be in the same place in a few more years.

There is conflicting information about debt consolidation. It can be tough to go through, but easier than having the heavy burden of debt. The information shared here should be used to help get yourself back on track again.