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Learn How to Consolidate Debts WITHOUT a Loan

By: Michael Millington

We’ve all heard about debt consolidation and how it works. You get a consolidation loan, you use it to pay off your debts and then you spend your time paying off your loan. Sometimes the loan you take out will have a high interest rate, causing you to have to repay a substantial amount more than what you borrowed. It sounds like a bad idea, but in order to consolidate debt this seemed like the only option available to some. However, there is a way to consolidate debts without using a loan at all. Here’s how you can consolidate debts without taking out a consolidation loan.


How to Consolidate Debts Without Help

Consolidating debt is generally a straightforward process. But when it comes to not using a consolidation loan, the process becomes slightly more complicated, if not involved. The key to consolidating your debt is to properly utilize your income by saving it. Once you accumulate enough money to completely satisfy your debts, you can pay it all off. At this point in time it’s possible that a number of fees have accumulated. If you’ve saved up enough to pay off the entire debt then you can do so without issue.


How to Leverage Your Savings

Once you’ve saved up to pay off your debts, there are some things you can do to actually save yourself some money. The first thing you must realize is that only you are aware of the amount of money you’ve saved to pay off your debts. This is your bargaining chip. Most lenders remain unaware of how much money you have to pay debts with. This means you can negotiate your debts down to less that what you owe through personal debt settlement. This can allow you to cut into your debt by an amount almost of your choosing. Just be sure to work within the limits of your funds and try not to get ask to pay too little of the debt.