One of the major and traditional methods for the consolidation of debts is all about taking a large sum of loan from a bank and further using that loan for paying off some smaller debts. This method is effective in paying debts quickly. However, the loan you would be carrying would have a high-interest rate too. Here are 6 easy steps on how you can consolidate your debts in a step by step guideline:
- First of all, make a complete list of the debts which you want to consolidate.
- In the list by the side of every single debt, you have to mention the total amount which you owe alongside the monthly payment due date and the paid interest rate amount.
- Now calculate the total of all the debts which you owe and mention them in one column. Now you would have a clear image in your mind about how much amount you need to borrow with a debt consolidation loan.
- Add up all the monthly set of payments which you have currently made for the side of every single debt and put the amount in another column. This gives you an idea of the comparison number for your side of the debt consolidation loan.
- Approach yourself to the bank right now or any source of online lending or credit union. Ask them about the service of debt loan that is also known by the name of personal loan. Investigate them about the number of monthly payments and the charges of the interest rates.
- Put yourself on the comparison about what you would be paying every single month and what you would be paying off with the debt consolidation loan.
Be careful when getting in touch with any bank for the consolidation loan! Follow the guidelines carefully! If you still feel like you can’t afford to pay your debts, research into a DRO or bankruptcy as a last resort!
Until next time.