How Can I Cosolidate All My Debts?

Consolidating your debts is a method of combining outstanding accounts such as credit cards and loans into one payment. This way of dealing with debt can simplify your monthly accounting and loan payment. In addition, if you're able to secure a lower interest rate on the consolidation, you can pay down your principal quicker. There are various ways to consolidate your debts. Explore your options and pick the one that works for you.

Instructions

1

Use money from your home's equity. Go to a home loan lender and complete an application for a home equity loan or line of credit. Borrow cash from your equity and use the funds to get rid of your credit card balances and other debts.

2

Get a personal debt consolidation loan. If you don't have equity, use other collateral like the title to a paid off car to secure funds for a personal debt consolidation loan. Shop around for the best interest rate. Choose a short term loan of three or four years and pay off your other debts with the money. This will mean that you have only one loan payment to make each month.

3

Use a life insurance policy to pay off your debts. Talk with your insurance agent to see if you're eligible to borrow money from your whole life policy. Repay the money over time, or have the borrowed funds deducted from the policy's value.

4

Work with a company to consolidate debt. If you can't qualify for a bank loan or home equity loan, use a debt consolidation company. This type of consolidation simplifies debts by combining balances from credit cards and loans into one new bill. You send a payment to the debt consolidation company each month and the company pays individual creditors for you.