How to Consolidate Bills

There are many reasons why people get into debt, they may have a lot of medical bills, they may have just been introduced to credit cards and have not mastered the use of the credit cards, they may need a new car. Whatever the reasons your paycheck is being divided into many different payments and if you are just making the minimum payment on a credit card then it will literally take you years upon years to erase that debt. The interest that you are paying on those various credit cards are not tax deductible, it may be wise to consolidate your bills

Instructions

Get out of Debt

1

Sit down at the table or on the computer and list all of your outgoing payments. Look at your debts, credit card balances, and the amount of take home pay that you receive. You can save thousands of dollars by consolidating a lot of small bills into one larger bill

2

If you are going to look into wiping out your credit card balances, and are going to get a mortgage on your home, remember that the interest that you pay on a mortgage loan is tax deductible.

3

The repayment amount for a consolidated loan needs to be less than the gross amount that you are paying. One larger bill is easier to maintain than several smaller ones.

4

Before entering into an agreement with either a mortgage company or a financial institution read the contract. Assure that you do not have a pre payment penalty that is added on the bill if you pay it off earlier then the terms of your contract

5

If the loan company or mortgage company offers free online payment, then that would be your easiest way to pay the loan back

6

Look at loan consolidation as a means to save you money. If you enter into an agreement which allows you to gather several bills into one larger bill, you will be saving money each month. Apply that extra money towards your consolidate bill. Ask the lending institution if they have any problems with paying additional money on your account. For instance if your repayment amount is $100.00 a month and you pay $110.00, inquire if that additional $10.00 is going on the principal. If so that would be a benefit for your to try to put as much extra on the bill thereby reducing the amount that you ultimately have to repay

7

Remember that if you choose to consolidate your bills through a mortgage, you will be paying at a minimum of fifteen years on the mortgage and the interest rates are tax deductible. This helps you when it is time to do your taxes in January.