Bill Consolidation

Bill Consolidation Options

household billsDebt consolidation can also be known as bill consolidation. You are a good candidate for bill consolidation if you have a lot of high-interest bills. Once you consolidate debt, all of those bills will be included in one smaller monthly payment. Depending on what lender you choose to do business with, there are a variety of bills that you can consolidate. Listed here are some examples of high-interest bills that you could consolidate:

  • Personal loans
  • Old service bills
  • Collection agency debts
  • Student loans
  • Medical and legal bills
  • Tax debts
  • Department store cards
  • High-interest credit cards

There are many more kinds of bills that you might want to consolidate. Just ask your lender what options are available to you. If you’re paying high interest and do not require more credit from a creditor, it would be wise to inquire about getting lower monthly bill payments.

“Credit Card Consolidation”

People commonly find it confusing that credit card debt consolidation can mean two different things. Usually it means consolidating debts where the main debts are higher interest credit cards.Credit card debt consolidation can also be interpreted as taking a couple of smaller debts at high-interest and ‘consolidating’ them onto one credit card with a reasonable interest rate. Credit card companies that are looking to have you as a client will really push this means of consolidation.

They will usually offer low interest rates on balance transfers, which are known as ‘debt consolidation‘ because your interest payments are still being reduced and you are putting your debts into one small monthly bill. Since the majority of people that need debt consolidation don’t have good credit, they are not eligible for a credit card with low interest that can take on all the higher-interest debts. If you do get approved, make sure you read the fine print to find out how long the low-interest is applicable for. A couple of months at 5.9 per cent may seem like a good deal on balance transfers, but if the rate skyrockets after that and you are not paying off the principal on your debt before then, it’s not a great long-term fix once the interest gets set back to the ‘normal’ rate.