subject: How To Consolidate Your Bills? [print this page] Were sure that the title caught your attention. While it was written to humor people, its also partially true for those who require consolidation. People who have five or more bills to pay every month often suffer from lack of sleep. When the pressure becomes too much for you, it might be wise to seek financial advice and consolidation.
First
Before heading to a friendly financial advisor, make sure that youve done everything in your power to reduce your debt and the bills you have to regularly pay. Therefore, the first thing you have to ask yourself is: which of the services I am paying for can be cancelled?
The most common problem is the number of credit cards that one carries. In the United States and elsewhere, credit card companies are increasingly becoming lenient with consumers in the effort to draw in fresh, paying borrowers. While this is a top-notch business practice, its not healthy for the borrowers themselves.
If you dont need four credit cards, why keep paying for them? If youre debt-free in two, cancel them today. If you have debts in the other two, find a new credit card company who is offering low rates on balance transfers and transfer that $5,000 debt to another card.
Communication Overspending
Another service can eat up the monthly finances: mobile phone subscriptions. If youre five in the family and each of your kids and your spouse has mobile phones, then you might want to reconsider. How much are you paying for premium services that dont get used at all?
Many telecommunications providers nowadays offer family packages. These packages are limited than regular plans, but theyre bound to save you money. In addition, you would be able to limit the usage of the mobile phones to avoid overspending.
Automatic Payment
If you have practical understanding of the Internet and online banking, you can arrange for auto-debit systems to take care of your bills. Telephone bills and even power bills can be taken care of, instantly. The best part about this kind of arrangement is you dont have to physically go out of your way to pay bills.
However, this does not mean that the process would be error-free. So make sure that you regularly check how much is being charged against your account every month.
Consolidation
Financial consolidation primarily operates by combining different loans for one easy, low payment. Basically, another institution pays for the loans completely. The dues are transferred to the consolidating company. People are attracted to consolidation because they dont have to large sums of money monthly.
However, you would be paying longer. This is how the companies extract their profit from the whole enterprise. Therefore, you must make sure, whether being consolidated is worth it. As weve mentioned earlier, you may opt to transfer your credit card balances to new cards with lower interest.
Doing so would allow you to repay the debt without being consolidated. After paying in full, close your account so that no more debt would accrue. Paying with cash is much less complicated than using credit.
by: frenn
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