What Kind of Bills Can Be Consolidated?

Debt consolidation is also referred to as bill consolidation, as the majority of people will use the service to combine multiple high interest bills such as credit card debts into a single loan at a lower interest rate. Most bills are fair game for consolidation, as long as they are unsecured. Once consolidated; multiple bills will be lumped into one monthly payment, typically smaller than the previous monthly payments combined (thanks to that lowered interest rate). It is also possible to pay more or the same amount each month, which allows you to pay down more principle on the debt.

If you're consolidating bills on your own without the aid of a service by getting a loan against your home or other collateral, you can choose to consolidate just about any bills you'd like, as long as you can afford it with the new loan. If you're getting involved with a debt management company, they may have certain debts that are permitted in their particular program and some that are not, but that will ultimately depend on who you choose to work with. .

Some examples of bills to consolidate include:

  1. Department store credit cards
  2. High-interest credit cards
  3. Old service bills (utilities, etc)
  4. Personal loans (unsecured)
  5. Collection agency debts
  6. Student loans
  7. Medical and legal bills
  8. Tax debts

Generally speaking, most unsecured debts are accepted bills to consolidate, and are usually those with the highest interest rates.