How To Consolidate Bills Effectively When You’re Left With Debt After Divorce

During the process associated with a divorce, there is probably enough on your mind without having to worry about debt and other money issues. Unfortunately, the pain of divorce is accompanied by financial problems more often than not. Are you trying to recover after a divorce, and having trouble keeping track of constantly growing debt and bills that just will not seem to go away? Debt consolidation efforts to consolidate bills can significantly reduce the amount that you are paying every month, which will make your finances much easier to handle.

The biggest problem associated with divorced and debt is that a single individual does not handle monthly payments and debt that were once handled by a pair of people. Even when debt is incurred during the marriage, either of two partners may be held responsible for it following a divorce. What this means, is that you may face a seriously overwhelming shock financially which can add to the turmoil of a divorce. It is important to utilize debt consolidation techniques in order to consolidate bills that are becoming overwhelming and hard to handle. The following is a brief list of steps that you can take in order to get your finances back under your control, so that you can make a fresh start all together.

1. Many people do not realize that you actually do have the power to negotiate lower rates on outstanding debt with credit card companies and other creditors. You should immediately contact your creditors when your bills become hard to handle, and explain your situation to them because there is a very real chance that they will be able to help you. You should not be shy about your debt problems in this case, because nobody can help you if you are not honest. After all, there is nothing to lose at this point and a whole lot that you can gain. Because credit card companies want as much of their money back as they can get, they are typically very willing to lower rates in order to ensure that you do not declare bankruptcy.

2. You should design a budget for all forms of income and expenditures. This budget does not have to be anything terribly complicated, but should give you a good idea of how your monthly income compares to your monthly expenses so that you can begin to make healthy financial decisions to keep from going further into debt.

3. You can obtain a debt consolidation loan if you have the equity or collateral to do it. By obtaining a debt consolidation loan to consolidate bills you can actually reduce significantly the amount that you pay per month for all of your debts, by consolidating them into one single debt. Debt consolidation loans bundle all of your monthly payments and debt into one, structuring your monthly budget so that you can manage it and really get on with your life.

The other convenience which is offered by debt consolidation loans is that you will be able to deal with a single lender rather than trying to make monthly payments to several credit card companies, a mortgage company, a lender, and so on. This significantly reduces the risk of missing a payment or defaulting all together, events which could seriously damage your credit rating. With the help of a single loan, it will be easier for you to make consistent monthly payments and to help improve your credit scores.

There are two different types of debt consolidation loans to consolidate bills that are worth considering: secured and unsecured. Secured debt consolidation loans are the ones, which require collateral. These are home equity loans, lines of credits and cash out mortgage refinances. Secured debt consolidation loans generally have the lowest interest rates that you can obtain, which makes them the most affordable option of all as long as you have the equity to acquire them. Unsecured debt consolidation loans on the other hand are personal loans, which do not require collateral of any kind, but are usually available with slightly higher interest rates.

Certainly there is enough going on in your mind following divorce without having to worry about constantly growing and overwhelming debt and all the financial fallout that accompanies a divorce. Divorce is painful enough emotionally without having to stress about financial issues as well. Debt consolidation efforts to consolidate bills can significantly reduce the amount of money that you are paying every month, and can eliminate a great deal of your debt if not all of it all together. Debt consolidation can make your finances a great deal more manageable, which in turn will help you move on with your life.

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