Getting out of debt, today is very easy. All you need is a proper debt counsellor who will help you find ways to consolidate your loans, manage your monthly repayments and negotiate with your creditors. There are many debt counsellors who provide these services. But how to get out of debt? Let us see how debt consolidation works.
Debt consolidation means that you are taking out a loan to pay off all the credit card or other debts you have. You can use the new loan to pay off all your debts such as your car loan, personal loan, student loan and even your mortgage. This way you have only one loan to repay. But, the downside is you will now have to pay interest on this loan. The interest rate charged on this loan will be determined by the finance company that you choose.