Everyday you watch the letters and phone calls come in. There is a knot in the pit of your stomach and you can't get it to go away. You are stressed and worried. You look at your children and wonder how you are going to be able to put them through college, or worse yet buy them clothes and shoes and food. You watch every penny you make go towards your credit cards, your two mortgages and car loan.
Sound familiar? Everyday millions of Americans are having the same thoughts and feelings. The only light at the end of the tunnels seems to be bankruptcy and it's a dim one. You don't want to file bankruptcy, but what are your other options?
One option is personal debt consolidation. Begin by sitting down with your spouse and looking at what you owe and what type of debt it is. Look at your credit cards. Determine what their interest rates are and what you owe on them. Begin to prioritize your debt by high interest to low interest. This is the first step.
The second step is to educate yourself. Find out the differences between personal debt consolidation and debt settlement. Determine which method would be better for you by writing out the disadvantages and the advantages of each. Debt settlement is generally your last option because they can wreak havoc on your credit rating.
The third step is to make a phone call to your local bank. Your personal bank will be very willing to help you regain financial control and offer you options to get you out of debt. Through personal debt consolidation with your local lender, you will be able to pay off all of your unsecured debt and make one monthly payment towards a debt consolidation loan.
At the same time you will want to be eliminating any unnecessary credit cards and lines of credit. This will help you credit report because there will be less available credit for you to go into debt with. Lenders will also be more willing to borrow you money if you require it during this repayment process. Another option is also to borrow money on your home equity and use your home as collateral. Not only is this a safe personal debt consolidation option, but you will have even more motivation to pay off the loan. Bankruptcy does not even enter into the equation here.