When people are looking into bill consolidation they typically believe that they have a few main options. This includes taking out a home equity line of credit, consolidating credit card debt into one credit card with a low interest rate and even refinancing. There is another option, and that’s called credit counseling and bill consolidation. It is very similar to some of your other options in that a credit counseling organization can help you consolidate your bills. They can also negotiate with creditors to get you a lower interest rate, waive certain fees and even decrease the principal amount of money owed to a particular creditor. They also go a step further. They can help you learn to budget and learn about the different aspects of financial management and care.
This financial education goes a long way to keeping you out of debt. A simple refinance or bill consolidation loan without any support or education will only provide a band-aid for the problem. Unless your spending issue was due to something that that was unforeseeable like a medical emergency or an injury, then the underlying issues of financial trouble must be addressed. Many people find themselves in financial trouble because of a lack of impulse control. There is a history or habit of buying things that one can not afford. Not understanding how to budget or being swamped with hidden and late fees and finance charges are other budget busters. And while a bill consolidation loan or transferring balances to a lower interest credit card may help temporarily, it won’t help permanently. Unless there are some fundamental changes made, an individual will end up being right where they started, in debt.
A credit counseling or bill consolidation organization can help you consolidate all types of debt. These include hospital bills, gas card bills, attorney bills, hospital bills, credit card bills, finance loans and even utility bills. You will typically be assigned a certified debt counselor and they will work with you as well as with your creditors to help you secure the very best interest rates, and they will also help you come up with a payment plan. They will also be able to tell you how long it will take for you to get out of debt if you follow their plan. When looking for credit counseling companies to help you consolidate your bills, it is best to look around and see who can help you secure the very best rates. If you do your research and take your time, you will find that credit counseling is a good option for bill consolidation.