How to Find Out About Bill Consolidation Loans

Finding yourself buried in debt may be a shock, but--unless your financial distress was the result of a medical emergency or employment disaster--you probably saw it coming. Regardless, the question then becomes what to do about it. Bill consolidation loans may look like a viable way out of your desperate situation.

Instructions

1

Evaluate your bills. Consider whether you'll be using your bill consolidation loan to pay your mortgage, your utilities, your credit cards, or your school loans. Knowing what type of bills you are paying will help you determine how they may be consolidated. Education loans for instance may be consolidated at a discounted rate.

2

Research the provider of the consolidation loan. Check them out with the Better Business Bureau and your state's Attorney General's office. Both groups will be able to tell you whether complaints have been filed against the company, and the Attorney General's office should be able to tell you if any investigations are pending.

3

Decide whether a loan is right for you. This will depend on how much you owe, what your bills are per month and how much you need to cover them. Many companies offer bill consolidation services, but they aren't always reputable.

4

Obtain your credit score. The better your credit score, the more likely you will get approved for a loan with a reasonable interest rate. If your credit score is less than perfect, your interest rate on the consolidation loan will be high, perhaps unmanageably high. You may want to look for a friend or relative with good credit and verifiable employment to co-sign your loan.

5

Calculate the payment the bill consolidation company is offering you. Decide whether you afford to make the payment without incurring more debt or leaving other bills unpaid. Otherwise, you may want to look into filing bankruptcy.