Who Should Consider A Debt Consolidation Loan?
A debt consolidation loan is the traditional way to handle your debt in a monthly payment. You go to a bank or credit union for a debt consolidation loan to pay off your creditors, and your debts are rolled into one monthly payment. You pay the bank back and the single monthly payment works better within your budget.

If you are in the Productive category, you can see your financial institution for a debt consolidation loan. This loan could be either secured (backed up by collateral) or unsecured. Talk with a loan officer about your options, because it is important you feel comfortable with the person serving you and the advice that is being given.

You can also talk to other financial institutions to find if they offer a better deal before signing on the dotted line.

What if You Can't Get a Debt Consolidation Loan?
Remember that you still have options. They may be simplified, but they are still options. Dealing with debt will come down to your ability to pay. Look at your budget to see what you have left over to deal with your debt.

Knowing that you don't have the option of a bank loan, what do you think would be the most realistic way for you to become debt-free? Talking with a credit counselor will give you ideas for working with your budget to payoff your debts. You can ask whether a Debt Management Program could work for you.

Back