If you are drowning in debt and having a real problem trying to make ends meet, debt consolidation could be the way forward. With debt consolidation you are left with just one monthly payment to worry about and you could end up paying considerably less each month than you do now.
A debt consolidation loan is a sensible choice if you have lots of creditors that you are paying each month. When you are paying out so many different amounts each month it can be easy to forget one and you might be having problems paying one or more of your creditors. In these instances you should consider debt consolidation. If you continue to miss payments you will simply tarnish your credit file and possibly add more charges and interest to your accounts.
There are many companies today offering debt consolidation loans and help with your debts in general. You should make that important call for advice the moment you notice there is a problem as leaving it too long could result in more problems down the line. Your creditors will continue to chase you for payment and could pass your account on to a debt collection agency who could send people to your home to collect payment in assets.
Once you start to think you might miss payments or you have missed a few payments, get in touch with a debt management company that can give you advice on how to consolidate your debts. It could be the best thing you do for your finances and your credit file - remember, your credit file could prevent you from getting more credit including credit cards and mortgages in the future so it is best to keep it in good condition.
When you consolidate your debts, your debt management company will pay off all of your creditors and leave you with one handy payment to deal with. That's great news if you have lots of creditors to deal with each month. All of your unsecured debt can be taken care of including credit cards, loans and store cards. Collect together all of your statements now so that you can work out a final figure of what you owe. That might seem like a scary prospect but it really is the best thing you can do.
Once you have that figure, pick up the phone and speak to your debt management company as they will be able to help you find the best debt consolidation solution. Consolidating your debts could be completed in a matter of a couple of weeks and you could be left with just one handy payment to worry about. Many people have chosen this method of debt management so why not do the same and see if this solution could help you. If you are already struggling with debts you have nothing to lose and you could improve your financial situation drastically. Take some positive action against your debts today.
Adam Halloran writes regular articles and features for SolveMyDebt - the company dedicated to helping the UK deal with debt.