Consalidating debt

There were also high fees associated with taking out a large loan.

Some people refer to debt consolidation as bill consolidation because consolidating your credit card debt has the effect of consolidating your bills into one. By calling a nonprofit credit counseling agency like In Charge, you can reap the benefits without taking on a new loan, including: not having to make individual credit card payments, less risk of missing a payment or paying late, fewer late fees, the ability to access lower interest rates for many of your credit cards.

This enables you to pay off your debt faster because more of your payment each month will be applied to the balance versus the interest.

Over the next few years, Anne experienced a number of financial set-backs.

She opened another credit card to help pay for a major car repair ($1500) and another to cover expenses when her roommate moved out with no notice ($2500). As a teacher, she thought she had job security, but her state had a budget crisis and teachers with little seniority were the first to go.

At 32, she owes $17,900 on 9 different credit cards.

In some 2-week spans, Anne has to make 5 credit card payments.

Every time I make my one consolidated payment, I know I’m one month closer to my financial freedom.” Debt consolidation lenders won’t qualify you for a loan if too much of your monthly income is dedicated to debt payments.

If you find your debt-to-income ratio in excess of 50 percent, you should consider alternatives to debt consolidation, including consolidating without a loan.

Learn about the pros and cons of various credit consolidation options.


  1. The company’s chief executive, Todd Westby, said that the chips would also be used to unlock phones, share business cards and store medical and health information.

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