If you opened your email recently then you might had received various offers from companies that provide debt consolidation services. They usually offer you to open a new debt with lower interest rate than what you paid so far. High interest rates are the hallmark of credit card debt and the rates are often a heavy burden for most people. Do you know the definition of debt consolidation? In principle, debt consolidation is an effort to combine multiple debts with high interest rates into one debt only, with a lower interest rate. In some cases, the effort could prevent a person from bankruptcy. Debt consolidation is a smart step in overcoming your debt problem.

However all things have their own risk, no exception for debt consolidation. Some people found themselves paying more than what should be paid initially. Therefore we need to know some important considerations before consolidating our debt. You should as much as possible get advantages from the consolidation that you’re doing and this article may be useful to you.

Credit score

Remember that every loan that you can get is always tailored to your credit score beforehand. If your credit score indicates you’ve scored a few goals without damaging your credit rating then you might be given more convenience for doing debt consolidation.


First of all you need to pay as much as you can each month and by doing this step then you can be free of your debt. If you feel that you have been burdened by various high interest rates then you should immediately contact your credit card company and do a negotiation with them. You have to negotiate to transfer your balance to a credit card that has a lower interest rate or a long-term non-interest introductory rate. Previously you had to make sure you know the level you can accomplish after the introductory period.

Sell your car

Remember that your car is not more important than the obligation to pay your debt and if possible you need to sell your car. Collect all your goods as much as possible and sell them if possible.

Contact a debt consolidation company

You can search them via email (as has been described above) or search through search engines such as Google and Yahoo. There you can find various debt consolidation companies that offer you a variety of services to change your debts into one debt with lower interest rate.

Life insurance

Remember that whole life policy allows a person to borrow some money. To borrow from your life insurance then you will get a lower interest rate that allows you to more quickly pay off all your debts. However, you must ensure that you can check out the tax implications of loans from your life insurance. You also have to understand that if you cannot pay your debts, then the total acceptance of your life insurance will be reduced equivalent to the amount of your debt.

The Better Business Bureau is a leader in providing trust to consumers in dealing with any company. Make sure any company you are evaluating to help you with your debt has an accreditation.