Have you ever fallen way behind on your bills and can’t even begin to start paying them off? Do you feel that you aren’t properly managing your bills? If you have answered yes to both of these questions, then bill consolidation could be a great solution to your bill management problems and worries. Bill consolidation is a way to pay your bills off at a reduced interest rate and have low monthly payments.
There are two types of bill consolidations. One is the bill consolidation program and the other is bill consolidation loans. The bill consolidation program is very similar to the debt consolidation program but with the bill consolidation program, you will receive help from a consolidation company. This chosen company will negotiate with all of your creditors in terms of reducing your interest rates. This way, your payments are made low enough so that you will be able to pay off your debts comfortably. This program is ideally for the person who has unpaid credit card debts, student loans and medical bills. In using this program, you will be able to consolidate utility payments and personal loans. Through negotiation with your creditors, you will be able to reduce or maybe even eliminate late payments.
This offer sounds tempting right? With the economy in such bad shape these days, there is no doubt that you, or someone you know is in great need of this program. How does it work? Well, let me explain. First, you will need to have debt counseling. This is a free session. During this session, your counselor will be asking you questions about your outstanding bills and your monthly income. After this, your counselor will assist you in finding out how much you will be able to pay on a monthly basis. After all of that is taken care of and out of the way, you and your counselor will be discussing your possible options for bill consolidation and help you choose the best plan that is offered. This is the biggest step. The first step is the preparation session and this is where you get all of your ducks in a row and plan ahead.
The second step is the negotiation phase. During this phase, the consolidation company will be negotiating with your collection agency and creditors to reduce your interest rates. If you have any credit cards taken out, they will all be canceled and closed. You might as well tear them up and throw them away because they will never be able to be used again. The next few things that will happen are: preparing a budget, come up with a repayment plan and come up with a reasonable monthly payment.
If you can handle taking out a long term loan, then the bill consolidation loan would maybe be better for you. Do be careful though. Be on the lookout for the monthly fees and payments that will be charged. Use this information to decide whether the bill consolidation program is right for you or if the loan would be better instead.