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Debt consolidation is a debt restructuring procedure that involves obtaining a loan to repay most of the pre-existing loans and other funds owed. All those individuals who run in bad debt seek consolidation to ease the entire loan repayment process.

This is also done to lower the burden on the borrower who is unable to pay all the creditors. However, if you are in a position to pay the owed money, then you will not benefit from debt consolidation loan. Thus, you must keep it as a last option when struggling to figure out your debts. This post talks about things that will help you avoid debt consolidation.

Review all your debt statements

Gather all the recent debt related statements that include car loan payments, credit cards, medical billing and student loan. You need to obtain the precise value or debt or the amount that is owed by use of the Excel spreadsheets.

You need to list all your outstanding balances, monthly repayment amount, contact information of the creditor and interest rates. Also consider your monthly pay as well as your expenses.

For expert advice you could also visit website. Although they are one of the best loan provider firms in the market, they also give valuable tips on finance and budgeting.

Inquire about zero interest rate balance transfers

Credit card debts range from high interest rate cards that are the most difficult to deal with. They should be dealt in a prompt manner. Prior to rushing for any debt consolidation program, it is advised to contact a credit card firm and inquire them to login for a brand-new credit card that comes with zero-interest rate balance transfer.

This 0-rate interest period is around twelve months or eighteen months in a few cases. This time won’t be sufficient to clear off the debt. It will need great leaps in the direction of debt freedom.

Negotiate with the lenders

It is required that every loan applicant becomes honest about their existing financial situation. You need to explain it to the creditors that you currently facing monetary difficulties. You need to tell them that you require low amount of monthly repayments on the total debt owned by you.  This is going to be difficult.

Tell the creditor that you are filing for bankruptcy. If you have unsecured debts, there are chances of losing everything if they do not revise the repayment schedule. Also, it is important to consider that the credit score is very low. Such strategies assist in getting more affordable loan repay schedules from the creditors.

Debt management

In addition to debt consolidation, there is one more procedure to reduce debt. It is called as the debt reduction procedure. It becomes very easy to save your credit score and then repay all the debts if you want to plan your finances in an effective way.

When you have several forgotten repayments, then it becomes wise to a setup a direct debit account with the bank. It will assist in increasing the credit score and ensuring that debt gets repaid in time.


Debt consolidation is an important task that requires a well-planned execution. In the above ways, you can easily consolidate your debts.


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