Bills Consolidation

Bills Consolidation Defined:

Bills consolidation is a financial undertaking where an individual, consolidates his or her bill payments into a larger obligation. This action eliminates exposure to multiple bill payments and their attached, interest rates, fees and late charges.

Bills consolidation is commenced by individuals who are facing mounting debts; the various payment obligations become suffocating and yield late charges or exorbitant penalties. When bills are consolidated they are grouped into a centralized pool, requiring only one monthly payment.

The solidarity offered by bill consolidation eliminates the exposure to the individual bills’ charges. It is an organizational tool that allows a borrower to better manage his or her finances.

In addition to mitigating exposure to individual debts, bills consolidation will secure a fixed—and often times lower—interest rate. In summation, an individual borrower will undergo bills consolidation to achieve the following:

• Decreased monthly payments

• The ability to better organize one’s budget

• Fixed and/or decreased interest rates

• Mitigating exposure to late fees, defaulted payments, high interest rates, service charges and other penalties associated with bills

• Eliminates all penalties incurred with previous bills and their attached payment plans

How do I consolidate my Bills?

If you are facing mounting debts and are exposed to your creditor’s crippling penalties or interest rates, you should evaluate bills consolidations. To consolidate your bills you must contact a credit counseling agency or financial institution that offers consolidation services. These aid individuals—and their families—by developing organizational schools and long-lasting relationships with underlying creditors.

When partaking in bills consolidation, a borrower will hire a credit counseling agency to inspect their financial situation—you can initiate a claim online or by contacting the agency directly and speaking with a licensed credit counselor. After you have elucidated your financial position, including all bills and payment plans that you are facing, you can either have your debts consolidated in a secured or unsecured manner. A secured consolidation will agglomerate your bills against the equity in your assets (cars, houses, property etc.). This undertaking will offer lower interest rates and lax payment obligations; however, if you fail to satisfy the debt obligation, your creditors have the right to usurp the equity in your assets.

Before enrolling in a bills consolidation program, you must evaluate the following variables:

• Are my interest rates becoming too much to handle?

• Am I being contacted by bills collectors?

• Are my minimum payments too much to handle?

Evaluating Bills Consolidation Companies:

To secure a sound and moral bills consolidation company you must conduct thorough research. Your first evaluation should entail a review of the company’s standing with the Better Business Bureau; all bills consolidation companies should be members with this entity. Furthermore, effective bills consolidation services should be non-profit organizations comprised of certified credit counselors.When you have secured a reputable bills consolidations service, you must contact the organization to verify and explain your identity and financial position. At this stage you must expound on all of your bills and their corresponding variables (interest rates, monthly payment amounts, total payoff amount).

When you deliver this information to the counselor, the professional will contact the associated creditors to negotiate your monthly payment. Your bills consolidation service will require a payment that is elastic to the amount of debts you have incurred; however, once the bills are centralized you will be left with only a singular fixed payment.