The first question you really need to ask yourself is what are my options for debt consolidation? Realistically you have four options available to you. We will try and explain each option to you as best we can.

Your first option for consolidation is a bank loan or some sort of financing to pay your debts out in full. This option will have the least impact on your credit bureau and will not prevent you from obtaining other forms of credit. Keep in mind that even with this sort of consolidation there are draw backs. Essentially what you're doing with this type of consolidation is moving your debt around. You are not really getting that much farther ahead.

You will be able to combine your debts and have one payment but chances are you will still end up paying a lot of interest. Not only that but you are still able to use the credit you paid off putting you at risk. If you rack that credit again the banks will not look at you for another consolidation. Please keep in mind, if you have fallen behind on your obligations to your creditors it will be very difficult for you to obtain any sort of financing to pay your debts back. You may not qualify for a loan.

Secondly, you have the option to continue paying your debt as you are now. This option may or may not be beneficial to you and will depend on what your situation is. If your debts are all up to date and you are not behind in payments this option may be your best solution as it will not impact your credit. If you're behind in payments and your credit bureau has been affected this option isn't the best for you. When your accounts are listed in the credit bureau as bad debts, or fallen behind, those records will last on your bureau for six years from the date of final payment. So if your bureau has been affected option three is one that you should consider.

Option three; Credit Counselling. Credit Counselling is a consolidation of payments and is not a loan. Credit Counsellors do not pay your debts out right away. What it is is a consolidation of payments. You make one single monthly payment to a credit counselling organization and that company sends monthly payments to your creditors. As long as you make your payment, your creditors get their money. However, there are pros and cons to this program and you need to be aware of them. Click on the links below to find out what they are.

Last but not least, option four, bankruptcy. For more information on bankruptcy and how it will affect you please contact your local bankruptcy trustee. We do not give advice on bankruptcy as it is a legal process and is best explained by an expert in bankruptcy.

So there you have it. Those are your options and a bit of information on what they are all about. If you are wondering what your next steps are you should consider what option is best suited for you and your needs. If you want to consolidate your debts by using options one or two, please refer to other sources as we do not deal in loans. If you believe option three is the best option for you, please click "contact us" or fill in the quick contact form