Help! I Can't Keep up with My Payments do I Need Debt Consolidation?

A Credit Article Contributed by Annie Bauers

I Have So Many Bills I Can't Pay Should I Consider Debt Consolidation?

Yes. Debt consolidation is taking all of your bills and debts and lumping them into one monthly payment. The amount you owe will not be reduced but your debt may be easier to manage if you have one monthly payment to make.

Can I Consolidate My own Debts?

No, you will have to work with a credit repair company who will make arrangements with all the lenders you make payments to. The credit repair company you are working with will either take your payment and make the payment for you to the lenders or they will pay them and take the money back out of the monthly payment you make to the credit repair company.

How Will Debt Consolidation Help Repair My Credit?

Most lenders are willing to work with you. They simply want the money that is owed to them. They would rather collect the money than destroy you and your credit and your future chances of doing business with that company again in the future. When you opt for debt consolidation the lenders are aware you are experiencing difficult making your payments. They are also aware that you want to make good on your debt and they will work with you.

When I Go to a Credit Repair Company for Debt Consolidation Will They Charge Me?

Yes, they are providing a service and they will charge a fee. However the fee for debt consolidation services is not overwhelming. Remember they are in business but their business is to help you get out of debt.

How long Will it Take Me to Pay off the Debt Consolidation Loan?

That depends on how much you owe to lenders. Even though you may feel that you will never be caught up don't despair because one day you will. It is not so far in the future and the outcome will be positive. Unfortunately you can go into debt much faster than you can get yourself out of it. Make your payments on time and do not become delinquent on them or you will be back in the same boat you were in before debt consolidation.

How Will I Pay My Debt Consolidation If I Can't Pay My Bills Now?

The monthly payment will have not have late charges that you normally were incurring and paying. In addition interest rates will be lower and one monthly payment will make it easier for you to keep current on your payments. The most important thing you can do is make your consolidation payments on time. By doing this you will eventually repair your credit and get out from under the debt that has been weighing you down.

If you are seriously in debt with too many monthly bills to manage and pay debt consolidation may be the answer for your problems. Although it is not a quick or easy way out of debt, it is a way out!