The option that best suits you will depend on your credit, available cash and other aspects of your financial situation, as well as your personality. What to do if your debt is insurmountable Get ready to tackle your debts Your options for debt consolidation Ask yourself a few questions to see if debt consolidation is really what you need: Am I serious about paying off my debt?
Consolidation works best as part of a larger plan to become debt-free; it shouldn’t just be a way to buy some breathing room.
This allows the debtor to make a single regular payment, rather than several smaller ones.
While consolidating debt often sounds like a promising solution, this could make your situation worse.
Consolidating debt usually involves taking out new credit to pay off existing credit.
If the interest rate on the new loan is lower than that on the previous ones, this can save the debtor money on his or her monthly payments.
If used wisely, debt consolidation can be a lifeline.