By Tl Kleban

Sit back and think about how much would financial stability be worth to you? It isn't a difficult question to answer I would imagine. The answer should overwhelmingly be a whole lot. After all, who wouldn't want less financial stress in their life and live their lives with a greater peace of mind. If all of this sounds pretty nice and maybe is something you would like, then you need to read up on a fairly simple process that can solve all these problems. This easy way to rid your life of financial burden is called debt consolidation.

Simply put, debt consolidation is a method of having two or more financial obligations such as school loans and a mortgage and then combining them into one large debt. More and more people are choosing debt consolidation as an easier way of handling multiple credit card debts through combining several credit card balances into one consolidated account. You now have an easy-to-manage budget all in one place.

• Write down all your debts on paper including all your credit card bills, mortgages, car loans and any other personal debts you may have. Find out the balance, interest rate and monthly payment on each.
• Figure out how much you can pay on each debt and when you can realistically complete paying back the loan. An example of this would be if you pay $40,000 for your car at the end of 15 years. If you have any questions on this step, it is best that you ask a financial adviser.
• As you are going over and reviewing all of your available options, always have your final numbers in mind. You should be asking yourself questions like how long will it take you to pay off your new loan and will it cost you more money over the long run? If any of your answers are not to your liking then you may be forced with just sticking it out with your existing loans, even if payments are a little higher.
• Expertly knowing and navigating the in's and out's of various loan programs requires a lot of heavy duty number crunching. If you don't think you are up to the task, again hire the help of a financial adviser.
• You can save paying on the interest by making higher monthly payments than the minimum on a regular basis than you need to. This will also cuts down the number of years you will be paying on the loan significantly.
• Have you ever put much thought into refinancing your original mortgage on your home? If so, you should pay attention to how much equity will be left in your home if you do go this route.
• One popular way of dealing with debt is to transfer one credit card balance to another card. Before you do this, check the maximum limit on the cards, and go with ones with a low APR. Stay away from cards where the APR is not high for balance transfers.
• Get in contact with a nonprofit service such as American Consumer Credit Counseling. They can negotiate lower payments and make it so that you pay all of your bills by writing just one check to the agency each month.

The Credit Exchange Corporation offers financial services such as Financial Analysis, credit card counseling and Debt Settlement through an affiliate network of debt consolidation companies and debt management companies. Visit us at www.thecreditexchange.com.

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