For many people, debt feels like the end of the world as they know it for themselves and their family is near. There are several personal debt consolidation options that are available to these individuals and they can help relieve the financial stress that you feel.
First, you must understand what personal debt consolidation is and evaluate your situation. There are several personal debt consolidation scams and it can be easy to fall into these if you don't know what to look for. Debt consolidation basically pays off your debt and then you pay the loan or the company that paid off your debt. Companies may charge you a percentage of your monthly payment or a flat monthly fee. If you choose to take out a loan, you can pay the bills yourself with the loan and then pay the lender that you borrowed the loan from.
One option that you have in a personal debt consolidation is to go through your insurance company. If you are a homeowner or have a life insurance plan, you may have options through these companies. They may allow you to take out a loan to pay the bills and then you pay back your home insurance or your life insurance. This money may come to you in a lump sum, which should only be used to pay back your bills. Any money that is leftover should be paid back to the lender along with your monthly payments.
If you are a homeowner, there may be options for personal debt consolidation is to refinance your mortgage loan. This may allow you to receive a lump sum of money that you will be able to use to pay of your debt. Be careful in this process, as there may be fees associated with this plan.
If you are having difficulties paying on your car, you may consider refinancing your car loan. You may choose to stretch out the life of the loan so that your payments are smaller, however, you will be paying more in interest. Or you may have to sell the car, pay off the loan and buy a car that is considerably cheaper but in good condition.
There are several forms of relieving debt without having to go through a personal debt consolidation company. You may have to be creative and make compromises on the lifestyle that you are living until you can get back on your feet financially.