• What Is Debt Consolidation?
• What Can Be Consolidated?
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• Types of Bankruptcy
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• What is Debt Settlement?
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• Which debts should I pay off first?
• When is settlement the best debt relief option?
• How should I deal with collectors?
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• Understanding Your Options
• Consolidation Services vs. Conventional Loans
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Consolidation Services vs. Traditional Loan Options

If you are interested in debt consolidation then you should consider your options. Basically, you have two options that include using a debt consolidation service to help you pay your bills or borrowing money to pay off all your debts. The big decision maker will more than likely be your credit rating and whether or not you could qualify for a debt consolidation loan or not. If you can, then this might be the best option if you qualify for a low interest rate. If not, then perhaps the best option is a debt consolidation service. Consider the pros and cons of each option below before you make up your mind.

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There are a variety of pros and cons that are associated with debt consolidation services and they should be considered before making a decision. The following information shows the cons as well as the pros to this choice and will help you make a choice.

• It is possible that all of your debts will not qualify for the service, especially certain unsecured debts.
• Also, your credit rating may be impacted negatively by using a debt consolidation service.
• In addition, you must meet certain debt minimums as set forth by the consumer debt service.

• Your payments are reduced immediately and this provides considerable relief for many families.
• Money management skills are frequently learned and people don't find them in the same situation again.
• Many times interest and fees are reduced.
• Debt collection calls and actions are reduced in many situations.

There are also pros and cons to borrowing money to reduce your loans. Consider these before taking action.

• Your debt is not eliminated, simply structured in a new way.
• You must have a high enough credit rating in order to be qualified for the loan.
• If you can't make the payments it is possible to lose your home or any other collateral.
• Once you clear credit card debt and start making a loan payment it is easy to overextend yourself with the credit cards again.

• There are no more phone calls, letters, or actions from the credit card companies trying to collect payment.
• Multiple payments are reduced to one monthly payment immediately.
• And the best of all is it won't hurt your credit rating and stands a good chance of improving it.

As you can see making the decision to consolidate your debt via a debt consolidation service or with a loan can be difficult, but at least the options exist to help you. The best thing for you to do is evaluate the pros and cons of each and make the decision that best fits your personal financial situation.