When faced with a wall of mounting debt, almost any financial action will be better than letting the bills continue to pile up.
The longer you remain idle, the worse your situation will become until there is no way out.
Fortunately, there is an entire industry devoted to helping you climb out of that hole.
A debt consolidation service will take your credit card bills, loans and mortgages and roll them up into a single loan.
This new loan usually has a lower interest rate than the combination of rates you were paying previously through all the different institutions.
Is it worth the little bit of extra effort to use one of these companies? Most people would say yes.
There are many benefits to handling things this way, especially if you are very deep in debt.
Here are a few of the positive perks you can expect.
You will only get one envelope in the mail.
After consolidation, you will only have to take care of one payment each month.
You will only need to go over one loan statement and you will only have to write one check.
You are dealing with only one company.
You may lower your interest rate as well.
It is always a worthwhile endeavor to look at ways to save money on monthly expenses.
The creditors will stop calling you.
Now that your debt is being handled, you will be able to answer your phone again without worrying about talking to collection agencies.
Finally, in time, your credit report will begin to improve this way as you continue to steadily pay off the new, single loan you have.
If you are behind in your bills and able to pay a little towards them each month, looking into a debt consolidation service would be a very good idea.
They are definitely worth the time.