Make Credit Card Debt Disappear, Even If You're Retired!

Retirement isn't supposed to be a debt riddled way of life. It should be a worry free, enjoyable time. Unfortunately, for many consumers debt has ruined their retirement. But what if I told you that, you could still pay your debts off? What if I told you that you could do it paying no more than your minimum payments right now? Well, you'd probably think I was trying to sell you something. Good news, I'm not, you can do it on your own! No need to pay that debt consolidation company $3,000 to do it for you. It's actually pretty simple, here's how:

Step #1: Make A List Of Your Debts: 

I've seen the smartest people I know make stupid mistakes because they forgot to prepare before doing something. When you do anything as important as working your way out of debt, it's vital that you get prepared. To do so, you will need to understand your debts. Start by making a list of all of your credit cards with a balance. Make sure to order your list from highest interest rate to lowest. Also, it should include the lender name, interest rate, balance, minimum payment, customer service phone number and pay to address for each of your credit card debts.

Step #2: Decide How To Go About Reducing Your Interest Rates: 

There are 2 different options that you can chose from for DIY interest rate reduction, first is interest rate negotiations and balance transfers, the second is financial hardship programs. Either of these options coupled with solid, aggressive payment plans, which I will go over later can prove to be a dream come true for you and your family. So, how do you decide? It takes a bit more than one paragraph so, I'm going to separate this step into sub-steps:

1. Check Your Debt To Income Ration – Add all of your credit card balances up. Do they add up to more than 15% of your annual income? This plays a crucial role in your decision because if your debts add up to more than 15% of your annual income, chances are, you will not qualify for enough of a credit line to transfer your balances via balance transfer credit cards. Also, you may be in the midst of a financial hardship.
2. Add Up All Of Your Minimum Payments – Can you afford to pay at least that amount of money every month? If not, you are dealing with a financial hardship and your lender has assistance for you.
3. Figure Out Your Credit Scores – If you have poor to fair credit scores, the truth is, you will not qualify for any balance transfer credit cards that are worth applying for. This however is often a sign of financial hardship!
4. Make Your Decision – If your debt to income ratio is too high, you can't afford to send at least your minimum payment comfortably and you have bad credit scores, financial hardship programs will be a better option for you than balance transfer credit cards. However, if you do have a low debt to income ratio, good credit scores and can afford to pay make your payments with a little extra comfortably, balance transfer credit cards are going to be your best option.

Step #3: Reduce Your Interest Rates: 

I have written several publications on both options for reducing your interest rates. If you decide on financial hardship programs, I suggest reading, “Understanding And Applying For Credit Card Hardship Programs”. If you decide that you would rather use balance transfer credit cards for interest rate reduction, please read “Do It Yourself Credit Card Debt Consolidation”.

Step #4: Decide On A Constant Payment: 

Have you ever noticed that as you pay your credit card bills, every month or two, the payments get a few cents or even a buck lower? This is because your minimum payment is based on your credit card balance. Therefore, if you can commit to sending no less than your minimum payments this month, you can commit to sending more than your minimum payments in the future. Every extra penny going to your principle balance saves you money in the long run. So, to decide on a constant payment, add all of your minimum payments together. Can you afford to send more than the total? If so, write down the total payment you can afford. Now, commit to sending no less than this every month until your debts are completely paid off. If you do so, you stand to save thousands of dollars in interest and years of time paying off your debts!

Step #5: Stack Your Debts: 

The debt stacking payment method is one that attacks your highest interest rate first. To do so, send minimum payments to all of your credit cards with the exception of the highest interest rate each month. All extra funds left within your constant payment should be directed to your highest interest rate. When your highest interest rate credit card is paid off, don't go back to making small payments and keeping the rest! Now, send all extra funds to your next highest. This aggressive payment method will really get you paid off fast!

My Conclusion

Even if you're retired, you don't have to live with credit card debts. If you follow this plan, you will be free in just a few years and finally be able to enjoy your retirement. I hope you've enjoyed my article and hope you come back to read more to come!

About The Author – Joshua Rodriguez

This article was written by Joshua Rodriguez, proud owner and founder of CNA Finance and avid personal finance author. This article was inspired by his most recent series, “Balance Transfer Credit Cards – A 7 Step Guide To Understanding This Option”. Join the discussion about this article, Joshua's series or any personal finance topic of your choice on Google+!

Managing your Bill Payments

Finance (Photo credit: Tax Credits)

Obtaining any loan is not a bad thing at all as long as you are aware of the rules and deadlines. The tricky side of the loans is that people usually take them and they are too careless to consider the loans to be a serious obstacle for being on the top of the financial aspect of the life.

Let us begin with the personal finances

Set up a budget and try to follow every step of it. The budget will show you where you spend your money and the amount of money itself that you may spend for this month. You will be able to save more funds for something bigger and more pleasant than just a simple pair of shoes or any new car tool. Compare the expenses with your salary. Are they the same or do you even waste more than earn?

Check your statement of account every month before posting your payment. The mistakes may occur everywhere. The payment bills are not an exception. That is why it is so important to check all your bills and figure out the exact sum of money you owe. It may happen that you will pay for something you did not buy. If you found a mistake, contact your issues at once for figuring out the situation.

The managing of your finances does take a bit of time but it is better to spend a little time checking everything, than to fall behind with all the payments later. At least you will be calm about your credit score.

Home loans: how to cope with them

Do not miss any of your loan payment as it may get you into a trouble. If you do not pay for all your bills and loans during several months, the debt collection notice may arrive and then you will find yourself in a big trouble. 

If an unforeseen situation has occurred to you, do not wait till your debt collector or a bank employee will contact you and remind that you have not paid back yet. Let them know about your difficulties and maybe they will give you some more time for coping with all the issues you have got.

In such situation there is an easy way-out - Canada payday loans for bad credit. They have become very popular among the consumers as they do not require a lot of efforts and time for sending a request for a loan. You will be able to get the required funds within 24 hours just sitting with your lap-top at home.

Do not forget about credit card debt

If you have got more then one credit card, focus on every card bill. You can save much money if you pay back the full balance, and will not keep a revolving one.

While buying something, ask yourself whether you will be able to pay the full price for this purchase and if you are not quite sure, then just pay with cash.

The Do-It-Yourself Debt Management Plan

English: First 4 digits of a credit card (Photo credit: Wikipedia)

Establishing your own debt management plan requires some time and energy, but it can be an effective and inexpensive solution to getting your finances under control. The following are some guidelines to help you get your plan up and running.

1) Figure out exactly how much your debt costs. To do this, you'll need to gather all the information you have about your debt and monthly finances, including your the total debt, interest rates, payments, living expenses, bills, and income, in one place, such as an Excel spreadsheet or other data management program. One of the easiest ways to get information about your debts is to check your credit report, which lists your complete credit history, including outstanding debts and those that have been paid. (Everyone is to a free annual credit report from the three major credit reporting bureaus -- TransUnion, Experian, and Equifax.) When you review your report, make sure you check for inaccuracies and false information since incorrect information could be hurting your credit score. Once you've determined how much money you're earning in ratio to how much your spending, you can determine a monthly debt payment that fits within your budget.

2) Understand how your credit cards work. To effectively reduce and eventually pay off all your credit card debts, you need to understand how the little pieces of plastic work. This means analyzing the terms of your card, including the annual percentage rate (also known as APR) and late fees, and your monthly billing statement. Once you have a grasp on how your card works and you can call your creditor and ask if they are willing to negotiate your rate. If the company values your business, it will likely try to work with you to establish a rate. If not, take your business to another company that will.

3) Prioritize your bills. Once you understand how your credit cards work, and you've examined your other debts, determine which ones you need to pay off first, such as those with high interest rates. By paying off these debts you will increase you credit score, which in turn will give you more leverage to negotiate the rates on other cards.

4) Create a budget. Determine how much money you need for your monthly living expenses and bills, and then track all your expenses to figure out exactly how much you're spending. Make sure to account for each and every transaction so you can get an accurate picture of your spending habits. Often, just seeing how much money you're spending each month can help you figure out where you can save money that can be put towards your debt. For instance, say you get a weekly manicure that costs $30. If you opted to go every other week or do you own nails, you could save up to $120 per month that can be put towards your debts.

5) Pay your bills on time. If you've been making your payments late, getting back on schedule is one of the most important parts of your debt management plan since numerous late payments can lead to a negative mark on your credit report. You should also always try to pay more than the minimum amount due -- otherwise the majority of your payments will likely going towards the interest that's collecting on the debt.

About Zantrio.com
Zantrio was founded in November 2007. Our aim is to inform and educate the world about trading, investing, and personal finance. Whether you're an active day trader, a casual investor, or a college student looking to learn the basics of personal finance, Zantrio was built for you!

6 Tips to Clear Your Debt Before You Retire

retirement (Photo credit: 401(K) 2013)

Many people have big plans in mind for their retirement. In the UK there are thousands of over 50’s in debt, and many of them will retire with debts. Debt can be a hard habit to break in our consumer culture, even for those over 50. It’s important to deal with your debt before you retire and have a fixed income. You’ll need to create a retirement plan to clear your debts before you retire. If you’re in debt and would like to clear those debts before you retire the following steps could help you get control of your debts: 

1. Don’t pile on the debt.

If you have debts, don’t start piling it on with more debts. It’s simple advice; if you have debt you should avoid getting deeper into debt. Avoid taking out any more loans, especially incising payday loans. Even a very small loan can start a vicious cycle of debt that could hinder your chances of clearing your debt. You should also avoid buying things on credit cards, that’s a sure way to build your debts. 

2. Calculate your income

Add up your regular monthly bills. So add up your monthly expenses, this includes food, gas, the cost of running a car and other necessities. Then subtract this amount you earn to calculate how much money you have left to cover and payback your debts. You can then find out how long it will take to clear your debts. 

3. Pay the lenders

Make sure you pay all your creditors in full and on time. It’s always best to avoid any extra unnecessary debts due to late fees from creditors. 

4. Consider consolidation

If you have many multiple debts you should consider a consolidation loan. Even if you have a bad credit score you could get a bad credit consolidation loan to pay off all your debts and put them into on monthly payment. Having just one monthly repayment makes paying back your debts much easier and you should be able to get lower rates. 

5. Save Money

You can pay off your debt quickly if you stop spending money on things that you don’t necessarily need. If you save money, you could put that extra money toward paying back your debt before you retire. Sure it will be extremely tough to cut your spending, but you’ll be better off in the long run and at least then you could retire debt free.

6. Use extra money wisely

When you get extra money, you should use it to clear your debts. So if you have an unexpected amount of money, like a bonus at work or some kind of inheritance, use it wisely. Be clever and avoid the common mistake of using the extra money to treat yourself; use the money to pay off your debts.

Get started today and hopefully these six tips help you become stress free and clear of debts before you finally retire.

How to Pay Off Credit Card Debt in 2013

English: First 4 digits of a credit card (Photo credit: Wikipedia)

With 2013 just around the corner many will be making new year’s resolutions about how they are going to join the gym, stop eating chocolate or fix their finances. While these pacts are all made with the best intentions, come Mid-February the majority of people will revert back to their old ways and forget about their resolution.

The one resolution that we are going to focus on throughout this article is the one regarding finances; and the various ways you can go about consolidating debt.

Debt can come in many forms, however arguable the most common is credit card debt; whether you've slowly amounted debt or have maxed it out in a matter of one purchase; getting it off your back is not that easy. Making minimum payments will chip away at the amount however depending on the amount owed and the interest rates attached; this method can take a number of years.

Arguably the best way to get rid of credit card debt is to transfer the complete debt over to a 0% balance transfer card. These work on the basis that you are charged no interest for a specific time frame; instead you will be charged a small transfer fee of roughly 3% of the balance.

The idea of a 0% balance transfer card is that you pay the complete balance off within the 0% interest time frame – failing to do this will result in you being charged interest each month after the 0% timeframe. Of course, one way of avoiding interest is to transfer the remaining balance over to another 0% interest card and continue to repay the debt that way.

The only problem with 0% balance transfer cards is their availability. Often, only those with immaculate credit histories will be eligible, therefore anyone with missed payments or defaults on their record will be declined.

When this is the case there are still a few options available. Many choose to take out a debt consolidation loan, much like credit cards, the cheapest rates will be reserved for those with immaculate credit history meaning that if you have had trouble with credit commitments in the past then the subprime loan market may be the only option.

Naturally, with subprime lenders offering finance to those with bad credit they will be less willing to lend large amounts and the rates will be much higher. Generally credit card debt will range from £1,000 to £10,000 and there are only two types of subprime loans that offer this amount; guarantor and logbook loans.

Logbook loans are loans that are secured against your vehicle, the amount offered by the lender will be dependent on the value of the car. The rates may however be more expensive than the interest rates of your credit card, although they are one way you could organise your debt if you have more than one credit card.

Guarantor loans are a unique loan product that requires the backing of an individual to stand as guarantor on the loan application. The guarantor simply supports the application and promises to pay if the borrower fails to do so. Guarantor loan lenders will be able to offer between £1000 and £7,500 over a term of 1 to 5 years. 

Author Bio: This article has been written by Jason Scott on behalf of UK Credit Guarantor Loans. To learn more about the loan market or for more money saving tips, visit their website and click on the blog section. 

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Guidelines In Investing Your Retirement Money

Retirement (Photo credit: Tax Credits)

Enjoyment in life does not have to end when one retires from his job and leaves work. In fact, it should be the time when one should sit back, relax, and reap or enjoy the fruits of his labor, so to speak.

But even during retirement, you should manage your finances and watch your expenses. Remember, you are no longer at work and you have no other means of earning an income. So unless you take care of your hard-earned retirement money, you may lose it through unnecessary spending and you may find yourself penniless one day.

When preparing for retirement, the first thing you should do is set aside money for your needs as well as for emergency purposes. Living expenses for food, clothing and shelter must not be disregarded. Similarly, an emergency fund that you can use in the event of illness, natural disaster and other unforeseen events must likewise be taken care of.

When all of these have been placed into your financial budget, it is time to explore your investment opportunities. As this is your retirement money, you need to be careful about the businesses that you want to put your money into. Many people have made the mistake of putting their retirement money into wrong investment ventures and end up losing much of their hard-earned money.

To avoid this, you need to avoid putting your money into high-risk investments to ensure that you have a secure financial base in the future and thus avoid bankruptcy. Although you may balance high-risk investment with low-risk financial opportunities, it is not a good decision to make.

Here are sound investments where you can invest your retirement money:

• Treasury bonds – As many financial experts would say, treasury bonds are one of the safer options for investment. Unlike stocks, they have a fixed rate of interest, which means you know the constant growth rate of the bond.
• Certificates of deposits – These are like money in time deposit term but in this type you will be penalized if you withdraw your money earlier as scheduled. However, if you have an individual retirement account (IRA), you can save and withdraw without penalty once you reach age 59.
• Annuity – This is another option that financial advisors recommend. You can invest your money into an annuity where you can save or deposit money in a lump sum or in small amounts over time before you retire and receive back regular payments like a salary when you retire. You can choose from different kinds of annuities such as fixed annuities which has a set rate of interest, indexed annuities with a fluctuating interest based on a particular index, and variable annuities where you can choose how your money will be invested and whose rate of return will depend on the performance of your investments.

This guest post was provided by DebtSuccess.com, the debt management experts specializing in debt consolidation, debt relief, credit repair, tax debt, debt settlement and more.

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• 5 Healthy Financial Habits To Build Wealth (50plusfinance.com)

Get Help to Get out of Debt

Debt Mummy Art (Photo credit: Brad_Chaffee)

Being in debt can be really bad for your mental health. The stress and pressure that it adds to your life can affect your relationship, your sleep and your general well-being. 

Too often, people who are in debt don’t seek out help soon enough, instead they bury their heads in the sand and hope that the problem will somehow go away. Of course, it doesn’t. The problem with debt is that if you do nothing about it, the amount you owe just grows as each missed payment will mean that more interest is added onto the amount that you already need to pay back.

If you are ready to admit that you need help with debts, then there are some different ways to go about finding that help.

First, be honest with your partner. As the old adage goes, a problem shared is a problem halved, and while this might not actually do anything to change the amount of debt you have, it will ease some of the guilt and pressure if you have been trying to hide the debt from your partner. They may also be better at managing the income that you have and help you begin to pay the debt back through careful budgeting.

If this isn’t the case, you can always talk to a friend or relative who is ‘good with money’. They can help you go through the list of your expenses and debts owing, and look at your income and then see the best way to start reducing your living costs and clearing the debt.

Your debt levels may be so significant that self-help is not enough. In this case you can contact one of the many debt management companies that are now in operation. They will help you devise a debt management plan or if necessary, organise a debt consolidation loan – where you borrow a lump sum in order to pay off all the individual creditors who you owe money. This means you will still be in debt, but only to the debt management company and you’ll only need to find one monthly payment. Although this may cost you more overall than paying off the individual debts separately, it will take a lot of the stress and pressure out of the situation as you won’t have different creditors chasing you.

Whatever step you take to start clearing your debts, it’s positive that you are taking the decision to tackle the problem and move forward, and that in itself is very motivational.

Related articles

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How to Deal With Debt When Retired

Retirement (Photo credit: 401(K) 2012)

It is ideal to pay off all debts before retiring. But at times, it is inevitable. You may have entered your retirement age but you still keep several outstanding debts that you have to deal with after you retired from employment. Getting retired does not mean you are spared from debt problems. You still have to deal with those.

Some experts advise individuals nearing retirements to postpone their retirements until they pay off all their debts. This is to make sure they will still have regular income and a source for paying dues. If postponing retirement is not an option, a retiree can still earn income by taking a part-time job, which may not be directly related to his former job.

Plan your retirement well. Aside from bolstering your retirement savings, try to eliminate all your debts. If you can’t help it, here are some logical strategies to deal with debts after retirement.

Use debt consolidation.

Debts should be paid even after you get into your retirement years. You may have stopped working and generating regular income but you are expected to continue paying your financial obligations. Retirement will not be a passport to neglect and not seriously take your debt problems.

If you still have debts to pay during or after getting retired, try debt consolidation. There are debt consolidation loans with better terms and lower interest rates. Secured loans will give you better rates and terms. As an alternative, you may use low-interest or 0% interest incentives of your credit cards’ balance transfer features. Again, after using the service, try to repay the amount as quickly as you can. Some balance transfer offers only apply lower rates or 0% rates within a limited or specified period so be aware.

Pay debts with higher interest rates first.

You may opt to pay off balances or pay slightly above minimum required payments on some of your debts for the meantime. Try to pay off debts with higher interest rates first. That is because you can save more money by doing so. The high interest rate payment can be added to the payment you make to get rid of other debts.

Keep on paying diligently. Make it a goal to lower your total debt as quickly as you can. Paying little interest will help you save on costs. As you go on to repay your obligations, you may also try to tighten your financial belt by living practically and frugally. You may expect to emerge out from the debt problem in a few years.

Once you get rid of all those debts, take a breather. Try to resist the urge to obtain loans and other forms of debts again. Live within your means so as not to make your coffers run empty. Your retirement years can be enjoyed more if you will not think more about those financial obligations you owe to anyone. During retirement, it is better not to live a stressful life anymore. Enjoy your years and get past debt problems.

Andrew enjoys blogging about personal finance and especially topics such as debt consolidation and management. Over the last 4 years, Andrew has written numerous articles and has been an active contributor in personal finance forums.

5 Things You Need to know When Dealing With Debt Settlement Companies

We have had our experiences with debt collectors. The calls all day long and on weekends also. Starting in the morning, sometimes starting at 9:00 A.M. Sunday morning. We have learned to screen our calls but it's still annoying.

Two of our children have had some credit card debts go into default. The debt collectors started to call. There are probably 5 different debt collectors that still call on a regular basis. I talk to them to explain that my kids don't live here anymore and that they are wasting their time. It usually goes well, the caller is business like and we're done but I had one bad call with a nasty debt collector who was insulting. I can see how the tactic works. They make you feel so upset that you give them the rent money to make them quit calling.

With the constant daily calls you become desperate to in trying to pay your debts. That's when you think of trying that debt settlement company. Most debt settlement companies don't succeed in cleaning up your debt. The fees are enormous and the process is long and stressful. Sure there are some that succeed but the success level is low. When dealing with these companies you have to very careful. I have listed a few tips to help you navigate them.

1. Most debt settlement companies charge regardless of whether they ever settle your debts. They usually collect most or all the fee from you long before they have helped to eliminate your debts. You pay the fee whether your debts are settled or not.

2. Debt settlement services don’t provide instant relief. Most debt settlement services require you to deposit a specific amount of money in a bank account each month until you have enough to make a reasonable settlement offer. While you are trying to save, the debt settlement company’s fees are being deducted from your bank account. Saving enough for a settlement can take a year or more. If you have multiple debts, you will save for them one-at-a-time, so the whole process could take several years.

3. Debt settlement services can be very expensive. The charge is often based on a percentage of the total amount of debt that you want help with when you sign up for the service. A typical fee of 15 percent (some are even higher) on four credit card accounts totaling $20,000 would be $3,000. You would pay that amount regardless of how many of the accounts, if any, are actually settled.

4. Claims for success rates can be very misleading. Debt settlement companies advertise big savings but those claims often don’t take into consideration the number of accounts that are never settled or the fees that customers pay. Industry figures show that the majority of debt settlement customers drop out of the programs within the first six months, after they have paid a large portion of the fees but before their debts are settled.

5. Debt settlement programs don’t stop debt collection. Banks and debt collectors don’t have to cooperate with debt settlement companies and they can keep trying to collect the money you owe. While you are saving for a settlement, your debt may increase because of interest and penalties, you may be hounded by collection agents, and you can be sued for the debt.

Debt Settlement companies are everywhere they want your business and may make promises they can't keep. At first, they may stay on top of your program but as time passes either you or the companies lose interest and your case just becomes another account in their computer. There are better ways to settle your accounts which I will cover in another post.


Here are some additional posts about debt:

The Early Warning Signs of Debt

Debt Collectors Are Calling me Everyday - What are my Rights?

Readers Question: A Debt Collector Is Threating me if I Don't Pay | What Should I Do?

Debt Snowball. What is it?

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Debt Snowball. What is it?

Image via Wikipedia

Image via Wikipedia

This term "Debt Snowball" what does it mean, does it refer to when Frosty the Snowman went over his credit limit? I don't think so. Its a term made famous by financial guru Dave Ramsey. The way it works is first be current in all your debts. List all your debts from smallest to largest ignoring interest rate. Pay the minimums on all your debts except the smallest one. The smallest one pay the minimum and as much other money you can scrape up to pay it off as fast as possible. After the first debt is paid off take that amount and add it to the second debts minimum. Hence increasing the payment on the second debt. When that one is paid off, take all that money add it to the the third minimum debt payment. Keep doing this till you go thru all your debts. This plan allows you to focus an ever increasing amount of money on your smallest debt. Every time the debts are paid off the snowball payment keeps getting bigger ultimately getting you out of debt sooner.

The key to this plan is the focusing on the smallest debt for an emotional win. Even though other debts may be a higher interest rate. You may be thinking paying off the highest interest debt first would be mathematically correct. The emotional win is more valuable to the individual. To have a couple of wins under your belt is a ego boosting feeling. This gives you the encouragement to keep going. In my personal experience it the only thing that kept me going and still does. The tedium of going thru this process is exasperating. It takes a long time and is a lot of work. You could lose patience and chuck it all if you didn't have some early wins. It like when you go on a diet and exercise. If you don't see results you most likely give up.

The argument of paying higher interest debt first is mathematically correct. It seems the right way to go. But responsibility with money is more psychological than math related. If you did the math on using credit, you wouldn't us it. It goes along with impulsed purchasing. Did you ever want to purchase an item. Maybe something you were exposed to when you were walking down the isle of a store. You just grabbed an item and put it in your shopping cart. Your whole thought process consisted of: See item, like item, I have credit card, Buy it. Totally a Pavlov's dog reaction. Not more than 2 second thought process and programed response. Now if you had left that credit card at home and only had cash the entire event would of happened differently. Thought process would go something like this. See item, like item, I only have cash, Do I want to use my little bit of cash on this piece of junk. Answer, "No". Its not automatic, it actually takes longer to decide to purchase because using cash actually hurts. Using credit is fun and painless and can be rationalized easily. You actually buy more stuff when you use credit. 

Here is an example of the debt snowball in action:

My Debts listed smallest to largest:

1. Home Depot - Balance 1214.00 - minimum 22.00 - Interest 15%
2. Chase 1 - Balance 2858.00 - minimum 36.00 - Interest 2.9%
3. Chase 2 - Balance 7076.00 - minimum 170.00 - Interest 16%

Here is the plan for paying off $11,148.00 of debt in 19 months. Its the plan I am going to follow. Of course if  I have any other extra money I will add it to the snowball. Again it will take discipline and focus to complete this. You must establish goals and make a written plan on how to complete them . The Debt Snowball is the best plan for getting out of debt. Some people have gone the way of "Debt Consolidation". Thats when you refinance all your bills into one amount and have one small affordable payment. This is not a plan for success. Its a lazy way of just moving your debt around and believing your actually doing something. Its a false economy to think that. Another way people pay back debt incorrectly is go to a credit consolidation company that takes charge of all your debt and renegotiates your balances and interest rates down. You end up paying them a large fee and wrecking your credit. Take charge of your debt, do this your self.

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