Debt Relief Through Bill Consolidation
You're up to your eyeballs in debt and have so many bills to pay that it's hard to keep track of them all. Paying them all feels like a juggling act that stopped being fun the minute it started. It's a nightmare that recurs every month without the blessed relief that comes from waking up. Sound familiar? If it does, there may be a way to wake up from the nightmare of too many bills.
It's called bill consolidation, and it may work for you.
Simply put, it involves taking out a loan to pay off all your debts and then making payments on that one loan. It doesn't work for everyone, but if it works for you, bill consolidation will greatly simplify your monthly bill paying and help you pay off your debts faster and with less cost than leaving everything separate.
The steps to bill consolidation are as follows:
· Get your bills in order so you know the size of your debt and the interest rates for each.
· Locate a reputable bill consolidation firm (the Internet may be a good starting point).
· Check their terms and conditions.
· Take a loan from them with an interest rate that is lower than you are currently paying.
· Pay off all your bills with the loan money.
· Pay off the loan to the firm.
If this sounds too good to be true, be aware that it can, indeed, be too good to be true. The whole point is to get a lower monthly payment than you are currently paying. Getting a loan from a loan company that has higher interest rates isn’t going to fix your problems; nor is getting a secured loan to pay off your unsecured loan going to help you either. When checking loan terms and conditions, watch out for the small print when taking the loan to make sure that you won’t be stuck with a penalty for paying off your loan early.
To get the most out of your bill consolidation effort, you will need to shop around a little to find a company that offers low interest rates and an unsecured loan. Plan on using the money saved by getting a loan with lower interest to the loan's principal to pay it off faster.
Consolidation is not workable for many people, but if you do your homework properly you might be able to make this option work in your favor.
money saving tips/facts
Stop smoking.
If you have a pack a day habit you are spending somewhere in the neighborhood of $1,800 a year. That is about $5 a day and money that could go into your savings. On top of that, you will save on your health insurance premiums and life insurance, not to mention health care as well.
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Insure for less.
Going with a low price insurer for your vehicle can save you hundreds of dollars each year. Your state insurance department can provide you with a publication that shows the typical prices that different companies charge. Compare and find one that will save you money.
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Don't wing it at the market.
If you shop with a list (and stick to it) you will tend to spend less on food. Also watch sales papers and clip coupons to get the most out of your food dollar. Plan your trip to the market and you will be rewarded with some pretty cool savings.
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Thrift stores rock!
The average person spends approximately $1,750 on clothing each year. By shopping at thrift stores, consignment shops and auctions, you can cut this figure down by about half.