Free debt consolidation

Debt consolidation is becoming an increasingly popular debt management tool used to help people get a handle on their debts. The principle of debt consolidation is simple: take out one low cost debt consolidation loan to pay-off all of your creditors, leaving you to handle just one loan repayment amount per month at a manageable rate to suit your finances.

Free debt consolidation advice is available from a variety of sources, including the Internet. Finding free debt consolidation advice specific to your circumstances though is not always easy, with some free debt consolidation sources giving apparently contradictory advice on debt consolidation matters. But, regardless of the approach you take to debt consolidation there are some basic rules that we should all follow to insure that the debt consolidation product we end up with is right for our situation.

Free debt consolidation advice

Free consolidation tip #1

Add up your debt: Before jumping headlong into a debt consolidation program you'll first need to work out what the total sum of your debt amounts too. Check the outstanding balances of all your credit cards, store cards, finance agreements and even your bank overdraft. For the purpose of debt consolidation do not include your mortgage.

Free consolidation tip #2

APR: Find out the APR that you are currently paying on your various debts. This will give you an idea of the amount of interest that you are paying on each part of your debt. If you add the APRs together and divide by the number of different credit cards, store cards etc. on which you have an outstanding debt then you will come up with the average APR that you are being charged. Don't be surprised if this is 15% or more.

Free consolidation tip #3

Work out your income vs. expenditure: Make a personal income vs. expenditure budget. This should include a column showing all money coming into your household on a monthly basis and another column showing all expenses that are going out each month. You'll need to factor in new purchases on credit cards, store cards, as well as all of your direct debits and monthly, quarterly and annual bills. Ignore current interest paid out on outstanding debt balances.

Free consolidation tip #4

Analyse expenses: Consider each of your expenses in turn, and ask yourself if you can reduce the cost of this expense. For instance, by changing your gas

About The Author

Gary Tallon is a finance writer of over 10 years experience, writing in various fields including life insurance and personal loans.

googleseo@hotmail.co.uk

A Quick Note From The Publisher... If you like the article above, you may be interested in the following article which is also related to Debt Consolidation... A Guide to Debt Consolidation Loans Should you find yourself overcome by debt, you might want to consider debt consolidation loans. These loans are designed with the person in debt beyond their means in mind, allowing for repayment of the outstanding debts while combining multiple payments into a single affordable monthly payment. Debt consolidation loans can be applied for at most banks or lending institutions, with some even specializing in debt relief and consolidation. Debt consolidation loans consist of a loan that is equal to the either the total amount of your outstanding debt or to a significant portion of it, and allow you to pay off that debt so that you have only a single debt remaining… the loan itself. Collateral and considerations Since applying for debt consolidation loans means that you have some amount of debts that you wish to consolidate, there's a good chance that your credit is less than perfect. If this is the case then you're probably going to need some form of collateral, or property that...

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