Should You Consolidate Your Debt?

Can you consolidate?

When you fill out our free, no-obligation form, you will be put in touch with several debt consolidation companies. This helps determine your eligibility for debt consolidation. While the basic premise of debt consolidation is not too terribly complicated, the financial world is rather complex and people's debt troubles are diverse. You will need to review your total debt, types of debt, most recent credit reports, credit history, current income, and more before you make a move. Having this information ready will help your debt consolidation or other debt free solution company or counselor advise you on the best method of debt repayment for your situation.

How can you retrieve this information?

Credit bureaus collect, update, and maintain your credit history. Credit reporting agencies use information from your lenders and creditors and their preferred credit scoring vehicles (FICO is one of the better known rating systems) to compile your credit report, which includes your credit rating (or credit score). There are three major credit reporting agencies: Experian, TransUnion, and Equifax. Each will provide you with one free copy of their report on your credit each year. Additional copies can be bought for a relatively small fee. If you are requesting the report in direct response to recent unemployment, a move to welfare, or an adverse action made due to your report (denial of employment, insurance, credit, or loan, for example) you may be entitled to a free copy of your report. First, check your reports for any discrepancies and challenge them with the credit reporting agencies and the companies who provided the allegedly false information-a process commonly known as debt repair. If, once any illegitimate information is removed, your reports indicate a complex or deep debt situation, fill out our form and determine whether debt consolidation is the smart next step.

When is the best time to consolidate?

The best time to consolidate is when you decide you want to find a debt free solution that will start working now. The best time to consolidate is when you decide to exercise some fiscal restraint and complement your new repayment plan with a responsible new budget and outlook on your finances. More specifically, the best time to consolidate your debt is when you have multiple loans or credit cards and are struggling to make your payments. It's when you are bogged down by high interest rates. And it is once you have received your complimentary quotes and information from leading debt consolidation companies and have chosen the one that offers the best solution-the best interest rates, the best competitive fees, and the best service.

When should you not consolidate?

If your recent credit history includes bankruptcy or other extreme debt solution methods, confer with a reputable debt counselor. Consolidation may not be possible, and if it is, it still may not be advisable. Especially if you are considering consolidating unsecured loans into secured loans, know your past and present financial statuses. You should not consolidate with a company who insists on keeping you out of the loop, or who will not explicitly state what they can do, how and when they can do it, and what it will cost you.