• Bankruptcy Alternative - There are several available alternatives for an individual seeking to file for bankruptcy. With the new bankrutcy laws, anyone seeking to file must first go through credit counseling and meet the standards of a "means test."
• Debt Consolidation Program - Consolidating debts is the practice of combining multiple credit obligations into one payment usually through some type of consolidation loan, debt settlement or credit counseling program. Review and compare multiple options.
• Unsecured Personal Loans - Personal, or signature loans (as they are often referred to), are typically for smaller amounts and usually do not require the borrower to provide collateral as security.
• Debt Management Company - Too many monthly payments to keep track of, let alone make payments on? Compare a list of  different debt management programs and get assistance with the managing your credit cards.

A quick way to reduce your monthly bills can be to switch from high interest rate credit cards to a debt consolidation loan or a lower interest credit card (balance transfer). This depends upon the total outstanding balances and APR (annual percentage rates) of your existing debts. Often, it makes sense to transfer your balances to a lower rate loan or card. Some times it does not.

Keep the following in mind:

1. When consolidating debt into a loan, remember that your payments will be scheduled and fixed. Unlike a credit card, which allows you to just make a minimum monthly payment, most loans are structured for fixed terms and payments. The consolidation of debt can certainly make things much simpler. However, in an effort to get out of debt sooner, make sure that you do not strap yourself with too high of a monthly payment. A responsible lender should do this for you. Regardless, be sure to set terms you know that you can budget for. Then, if you have extra money available, add to your required payment and be sure to instruct your lender to apply the extra amount to the principal balance of your loan. Please note: Some home equity and consolidation loans charge penalties for paying too much a percentage of the remaining balance in a payment, or for paying your loan off early. Pre-payment penalties are not allowed in all states, but never assume anything. Thoroughly read your loan documentation and ask any potential lender questions about anything you don’t understand…. before you sign the loan documents! If they are unwilling to answer your questions to your satisfaction, leave the offer on the table. There are plenty of reputable lenders willing to fight for your business. However, if you already have an existing loan, and will incur a penalty, be smart. Save the money and put it into a bank account. Next time you experience an emergency and go to reach for your credit cards, stop! You will have the money in the bank.
   
2. Debt consolidation loans or credit card consolidation / balance transfers are great for helping you simplify and lower your monthly payments and get things under control. However, too often, the irresponsible behavior that got consumer after consumer intro trouble in the first place returns. When you consolidate debt, it is not a green light to break out the plastic and go shopping. It is a second chance to put yourself on a solid financial path, and you should take advantage of it. Do what is suggested above. Make extra or larger payments. Or, open a savings account and build an emergency fund for things that may come up. In addition, prepare for the holiday shopping season and save up. When buying gifts, keep the credit cards in your wallet or purse. Better yet, cut the cards up, close the accounts and then you won't have to worry about the temptation to use them.

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Make sound financial decisions when debt consolidation and financial services shopping. Educate yourself!

Please note that the Debt Consolidation Loan Directory has a constantly growing list of resources for consumers searching for many types of financial services online, such as mortgage refinance lenders, life insurance companies and debt management programs. The best way to make sound decisions concerning your personal finances is to become better educated about how they work. Please feel free to visit our consumer information library or one of the related topics below.

• When Credit Card Debt is "Out of Sight - Out of Mind" - The phrase “Out of sight – Out of mind” becomes reality when one considers how easy today's financial marketplace has made it to obtain and run up the balances of retail and bank credit cards.
• Should You Use Credit? - Everyone wants to build a strong credit history. It enables you to to accomplish a lot of the things you want and need to do in your life, like buying a car or financing a home. It may also affect your chances of employment when applying for a new job.
• Questions to Ask When Getting a Home Equity Loan - What questions should you be asking yourself when considering home equity loan financing? The FDIC has some suggestions.
• Get a Free Copy of Your Credit Report - The information contained in your credit report now controls your access and pricing to many financial services, like obtaining loans and even insurance coverage. Under the law, you are now entitled to receive one free copy of your credit report each year from each of the three main companies that compile this data: Equifax, Experian and TransUnion.

debtconsolidationloan.com is a free online directory and not a financial services provider. All information regarding debt consolidation loan companies and other services is deemed reliable, but not guaranteed. debtconsolidationloan.com is not responsible for the content and services, that may be provided to you, by following the links from this website. Use this site at your own discretion. Last site update: 2012-02-02.