Tips on consolidating debt

21 Nov

If you need help getting out of debt, you are not alone.

Although signs show an upturn in the economy, many Americans are deep in debt, and not everyone can work overtime or a second job to pay down that debt.

You should get free debt advice before you take out a secured debt consolidation loan.

Before you choose a debt consolidation loan think about anything that might happen in the future which could stop you keeping up with repayments.

You can’t borrow your way out of debt in the same way you can’t get out of a hole by digging out the bottom.

Getting out of debt isn’t quick or easy, but it’s the first step to achieving lasting financial health. It simply means you’re taking out one loan to pay off a bunch of loans—or consolidating the debt to one payment.

In many countries, especially the United States and the United Kingdom, student loans can be a significant portion of debt but are usually regulated differently than other debt.

The bulk of the consumer debt, especially that with a high interest, is repaid by a new loan.

Find out more about how debt consolidation loans work, then get free debt advice before you make a decision.However, if misused, consolidation can make bad debt even more difficult to manage.See Step 1 below to start learning how (and when) to consolidate your debt.Interest is the fee charged by the creditor to the debtor, generally calculated as a percentage of the principal sum per year known as an interest rate and generally paid periodically at intervals, such as monthly. Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans.Household debt is the consumer debt of the adults in the household plus the mortgage, if applicable.