Should You Consolidate Your Debt?

Across the country, experts are suggesting that the recession might be over. That may be true - I'm certainly no expert - but it seems like a lot of people are still hurting. Millions, even. While fancy bailouts might not be available to you, just an ordinary taxpayer and consumer, there is something out there that might be able to help you out. You might be able to consolidate your debt.

If you were to consolidate your debt, there are a number of advantages that might be in store for you. What is debt consolidation? This is where a third party financial company essentially gives you a loan in the amount of your outstanding debt for any number of monthly payments you might owe. Some examples of these debts you might have that could be consolidated include mortgages, car loans, credit card debts, student loans, home loans and other loans or outstanding debts. If you feel overwhelmed by noth the amount and number of debts you pay each month, you might want to consolidate your debt. This third party pays off all of your other debts and only asks of you a single monthly payment for the amount of the loan.

Obviously, there are some pretty good benefits if you do consolidate your debt. Instead of several payments due each month, you would only pay one. I know that in the worst times, I had to struggle to make every single payment each month - and often times it wasn't even about the money. Keeping track of the different monthly bills was in and of itself nearly a full time job. Consolidating your debt might be able to save you something more valuable than money: time.

Having equity is a pretty sure way to help secure a loan to consolidate your debt. If you have either paid off a good amount of your mortgage or have seen the fair market price on your home go up over the past few years, you can use that home equity as collateral for this loan; you might even get better interest rates!

There are some reasons you might not want to consolidate your debt. You might spend months or years longer in debt than if you hadn't. Not all debt consolidation loans are created equally, some may benefit you, others might not. Talk to your mortgage broker or some other financial lender that you've had a good experience with in the past. They can probably recommend someone that can help you out - and maybe they can even consolidate your debt for you!