Consolidating Debt is often regarded by many as a sign of personal financial mismanagement when in fact it is quite the opposite as this article outlines.Debt consolidation is often considered a last choice option for people who are struggling with paying their credit card debt. Many believe that to consolidate credit debt is akin to saying that they cannot support themselves. If they were to collect some debt consolidation information, their attitude might change. That is because debt consolidation is a way of saying that they insist on paying their bills, no matter what, rather than saying that they cannot support themselves, and that is something that should be respected.
If you are one of these struggling individuals, do not wait to do something to correct your slow and no payments to your creditors, you need to do something today before your credit is adversely affected, or you get so far behind that you will be beyond standard help.
When collecting debt consolidation information, the first thing you need to determine is whether you want a credit card consolidation loan, or if you want to use a credit counseling service. Each one has its own merit, and it depends on what your personal situation is that will determine which is right for you.
Getting a loan might be out of the question however, depending on what your credit score happens to be. If you are already behind on your credit card payments then it is doubtful if you will qualify for yet another debt. If you own a home, you could possibly get a home equity loan, but remember, if you are already hurting for money, you do not want to risk losing your home in order to pay off other debts.
Once you make your decision about what kind of consolidation that you are going to use, you then need to get all of the debt consolidation information that you can find on the type of consolidation path that you are taking and ensure that you have all of your ducks in a row before beginning.
For example, if you choose credit card consolidation loans then you are going to need your income tax returns, proof of income via six weeks worth of pay stubs, bank statements, co-signer information (if applicable), etc. If you choose to go with a credit counseling service, you will need proof of income and a bill from each of your creditors. They will also require that you write each of your creditors a letter informing them of your intention to enter into credit counseling as a way to pay your debt.
Gathering debt consolidation information before you begin will help you be more prepared for what you will need no matter what your choice happens to be. And the more prepared you are, the smoother the process will be.