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Consolidated Debt Solutions: Loans and Credit

By: Michael Millington

Debt consolidation is a wonderful way to keep multiple debts in check by paying them off altogether. For those who can acquire consolidation services, their debts can be eliminated almost immediately. Only one debt would be left over and can be budgeted in to be erased through monthly payments. However, many people who look to consolidate their debts look don’t know that there are multiple ways to do so. Here we will discuss the different consolidated debt solutions available to you.

Consolidated Debt Solutions Available to You

Debt Consolidation Through Loans

The most common way to seek debt consolidation is to apply for a consolidation loan. Debt consolidation through loans can be achieved through dedicated lenders or from banks. The process for each form of lender is generally the same: you apply for a loan, your credit is checked and you get the terms of your loan OR you are denied. While you can go straight to a bank for this, you can also find out your ability to be accepted for a loan through loan gathering sites (like LendingTree). You can see what kinds of loans you can qualify for without affecting your credit score this way. This might not help if you don’t qualify, but going to a bank can help. Some banks allow for a certain level of loan negotiation. However, this is only one of two consolidated debt solutions.

Debt Consolidation Through Credit Cards

The other side of the consolidated debt solutions duo are your credit cards. Credit cards can be used to consolidate multiple debts as well. They work similarly to consolidation loans, but they have the added benefit of being reusable after being paid off. You can also use your existing credit cards to get the job done. In some instances, you might need to increase your credit limit to create viable consolidated debt solutions for your debt. This can be somewhat easier than applying for a loan due to your established relationship with your credit card provider. A credit card provider can increase your limit due to your payment history with them. Consolidating debt this way can provide an even faster and sometimes simpler method of the two consolidated debt solutions.