Start Consolidating your bills good idea

Consolidating your bills good idea

Nobody likes managing bills – at least if they’re not getting paid an accountant’s salary.

You are presumably taking higher interest credit card debt and rolling it into a lower interest loan [so] instead of paying many different debts each month you are paying one.” However, she said “in practice, unless you are a very disciplined person debt consolidation isn’t going to work.” “We see the most well-meaning people trying to be financially savvy and roll all their bills into a debt consolidation loan,” says Cunningham, but come the next year they are back to running up debt on a credit card that they rolled into the loan while still having to paying the debt consolidation payments.

"A lot of times they will find its not as easy as simply having no finance charge.” As unwise as either option may be, neither is as easy as it used to be, says Cunningham --which may actually be a good thing.

These days, she says more people either have little or no equity in their home.

They have either tapped it already, failed to build any in the first place because of their choice of mortgages or the property is now worth less than what is owed on it.

As for the practice of transferring credit card balances, that joined the casualty list of the credit crunch.

A more sound course is to go to a bank and get a personal loan, but that may not be easy.

“In today’s environment you will have to have very good credit to take out that loan and you’ll have to put up some collateral,” explains Cunningham.

Mistakes To Avoid If you want or need to consolidate, be aware of the following..