Bill consolidation

Bill consolidation involves taking a loan to close the current. One of its advantages - the presence of one payment instead of several.

In addition, the interest rate may be substantially lower. There is a choice between secured and unsecured loan. Typically, financial institutions ask for collateral property located in your property.
Is bill consolidation - a good idea?

Let's say you have five credit cards and even car loan payments for which you have to make monthly. You can take a loan debt, to cover all of these six credits and pay once a month at a lower interest rate and a lower price than all six charges. In addition, regularly making payments on the new loan, you correct your credit history. This can be considered a great option if to make payments on time. The main thing to watch, that interest rates unchanged throughout the period of the loan.

Is bill consolidation - a bad choice?

Bill consolidation can be a tricky business, as banks study your credit history. If you did not make payments on time, you may get a higher percentage. Without a doubt, you can ask the companies governing the debt, but they charge a certain percentage for such services and end all that you overpay a lot more than they could. Therefore it is better to deal with the lender, when possible.
Bill consolidation is better than bankruptcy?

Filing for bankruptcy can give a chance to rebuild credit afterwards, but after 10 years, at least. After declaring bankruptcy, the State itself chooses to sell the property to pay off your debts. Yes, improving credit rating after bankruptcy is possible, but after some while. Better to resort to the method of bill consolidation. But if the situation is so bad that there is no escape - then bankruptcy.

Overall, consolidation option has its advantages and disadvantages, so better to weigh before you agree to it.