Helpful debt consolidation tips are just a click away! Ask for advice, give some tips, and help yourself as you help others. Motivate and be motivated to get out of debt.
Debt Settlement vs. Debt Consolidation vs. Credit Counseling: Learn what others did that helped them get out of debt faster. And you’ll learn what they didn’t do, but should have, that would have helped.
And if you’re someone who has successfully consolidated some debts, please share your story, your tips and your suggestions with our readers. Your words could help someone else save thousands, perhaps tens of thousands of dollars, in interest payments.
Or maybe you’ve worked in the debt consolidation counseling services field. Who better to explain a difficult concept than someone who’s helped others get out of debt?
That’s what we call paying it forward in the world of debt consolidation!
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Click below to see the debt consolidation advice and requests for advice from other visitors to this page…
Dazed and confused
We have refinanced our home many times (dumb), except when it was to lower the rate. Most times, we used equity to pay off auto loans, pay credit card …
Consider what happened to Nancy and Bill
Maybe you can relate to one couple’s debt consolidation experience, these are useful debt consolidation tips to consider.
Bill and Nancy went to the bank seeking a loan to replace the roof on their home. Since their debt-to-income ratio was too high, it was suggested to them that consolidating their unsecured debts into one monthly payment would allow them to qualify for the new loan.
At the time, this seemed like a great relief to the couple, but it started a cycle that continued for many years. It wasn’t long before they were once again facing financial difficulties. On three different occasions, they withdrew money from their retirement fund to pay down high credit card balances. During a 15 year period, they took out three debt consolidation loans and renegotiated their mortgage to extend the term and lower their monthly payment amount.
Now, both have reached the age of retirement, yet they have very little equity in their home and greatly depleted retirement accounts. In his sixties, Bill should be relaxing and enjoying life. Instead, he has taken a second job to make ends meet.
Bill and Nancy are the first to admit that debt consolidation can be a great solution, but it must be accompanied by wise financial choices and responsible spending. If you stick with the same habits, eventually, you’ll end up right back where you started.
Looking back, they say that credit counseling may have been a better solution for them. Rather than reorganizing their bills, they would have been given a plan to help them get out of debt completely, and received the tools they needed to learn how to manage their money properly.
Get free credit counseling advice to help you overcome your debt. Know All Your Options.
But, not all debt consolidation stories end this way. Phillip understood the need to know as many debt consolidation tips as possible before he made a decision about this debt.
When the company Phillip worked for went on strike, he was forced to use his savings to pay his bills. But, after several weeks with no income, he was left with delinquent payments and high credit card balances.
Even when he went back to work, the financial strain of trying to “catch up” was causing a lot of stress. Debt consolidation was the ideal solution. It put him back on track financially and allowed him to move forward. Five years later, due to some wise money management, Phillip’s consolidation loan is paid in full.
Choosing the right debt relief option can make all the difference in the world. And, knowing how to use each solution to help you achieve financial freedom can prevent future problems.
Cancel my Consolidated Debt Services
Posted by Miranda (Nova Scotia)
My husband and I are in a consolidated debt program. I’m thinking about canceling. Right now our credit scores are showing R7 and we would like to get a house.
Would it help our credit score to cancel the program and pay the credit card companies on our own?
If you and your husband can afford to, yes it would be in your best interests to cancel the program and pay the debt directly.
However, make sure you won’t incur a penalty for cancellation of the program. No sense stepping into the fire from the frying pan 😉
You should also make effort to set up and maintain a good budget for you and your family. Work out what you can pay off, save, etc. as well as the other expenses one has from month to month.
You can find free budget worksheets, tips, etc. for managing your money here:
As well as a variety of free calculators to use via our Budget Calculators page.
We wish you the best!