If you have many different types of debt you can consolidate it into one payment but there is some controversy involved with consolidation. There is a risk and a high cost with it too that sometimes consolidation would not even be the best solution. I was told by a lawyer about this situation. Well, if your debt is over 20k, I say you can wait until seven years from now and just let it default and have the creditors charge it off on their tax return. If you’re just barely making three thousands a month of your income and that is probably the average income then what is the probability that you can and will want to pay off 20k. I think that if you’re overwhelmed with your debt and you’re trying to consolidate it all into one then you shouldn’t do it. You should just let a very large debt go into default and it’ll get out of your system within seven years. If you got a large debt chances are you are not making late payment and paying thousands of dollars on late payment fee, interest fees, and all other.
I don’t think it’s a good idea to continue with a large debt because you’ll just end up digging a larger hole for yourself and you will not get out of it any time soon unless you are a very wealthy person who can come up with that amount of money in time. I think that you should let go of large debt and consolidate debt that you think you can make payment and they’re low and not a very large debt. If you have a very large debt and you only make an average income then chances are you won’t be able to pay it off any time soon. You will be paying thousand and thousand in interest and in late fee. I don’t think it’s a good idea to try to pay off something that you can’t. You should just let it go into default. If you want to save your credit and you think that you can pay off the debt then you can try to consult with an attorney for consolidation help or a financial expert for help but it’s not the best way to go either. Whether you consolidate the loan or pay it separately you will still be paying for more than what you walk into and that is the fee for the attorney or financial expert to help you handle the case. No one is going to do it for free you know. I think that you should not use an institution to consolidate your loan because you can try to do it on your own.
All you need to do is to contact your banks and tell that you want to consolidate and they can help you with certain accounts that you want to consolidate. The thing is you have to pay for company to help you consolidate so you’re not really reducing your debt but now you have one more bill and that is to pay that company. The company that helps you won’t pay your bills for you until you have pay them a certain amount of money to help handle your case. This is what a lawyer told me. So by doing this you will create another bill for yourself. You can try to call creditors and tell them to negotiate down your debt and then pay what you can and this is the best way. If you can pay your debt than just let it go into default and within seven years you can rebuilt your credit.