Sometimes, it pays to get some legal advice. Try to consult a lawyer who is versatile when it comes to debt consolidation. There are instances that after some careful analysis on the problem, debt consolidation is not that necessary after all.

 

6. Get a calculator.

 

Before jumping to a debt consolidation, try calculating first the things that need analysis. Look for the debt to income ratio. If you are earning a considerable amount of income and your debt does not cover too much of your salary, then it's not advisable that you go out and find some ways to consolidate your debt. Debt consolidation is not an easy way out of debt. In fact, it's just another way of doing things. If you know that the percentage of how much you owe is not that big when compared to how much you can afford to pay them, then you don't have to go for consolidation.

 

7. Contact a refinance expert.

 

Nowadays, there are many refinance experts ready to give some advice to people who are having problems on their mortgages, car loans etc. These experts can give you tips on how to refinance the right way.

 

8. Try the do-it-yourself approach.

 

You need to be confident in doing this. To do so, you must equip yourself with knowledge on the financial business, budgeting, loans, and credit. The bottom line is, if you know all these things, you really don't need the services of those credit advisers and don't have to consolidate a debt, so to speak.

 

Hint:  Read the rest of this book and the resources available on the Internet that we direct you to (as well as others that you find on your own by doing searches).  However, be wary of any “services” that send spam to your email account!

 

9. Bankruptcy.

 

If you think that you can no longer pay what you owe even if you consolidate all your loans, go for bankruptcy. It can help you pay off your debt, get discharge, and stop all collection efforts. However, this should be your last resort if all other methods fail because the damage it will create on your credit history can be devastating and will be long term.

 

10. Avoid debt.

 

The greatest alternative to a debt consolidation is to avoid getting into debt. If you manage your finances wisely, track your purchases, and stick to a lifestyle that you can afford, then you don't have to consolidate your debt.

 

There are so many people who resort to debt consolidation even if they're not heavy on debts. Most of them tend to think that it would be a lot easier to have one payment bill each month than 5 different billing statements. They don't know that what they're bound to commit is one of the greatest sins of financial management. As most expert say, never put out a fire with fire. Getting debt consolidation may just make the matter worse.

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