I received an email from a client a few years back asking for advice with his 'Bills Consolidation' problem. This person was a well educated, native speaker of English and he was so upset that even his basic grammar skills had escaped him. The consumer debt problem has plagued our society for ages and it evokes one of the primary human emotions: fear. With knowing what your choices are is the first step to becoming debt free.

Being faced with a pile of bills can become confusing and disorienting. If you add up all of the individual payments to some can be a big chunk of your monthly income. Bill consolidation loans can help organize and amalgamate with the goal of releasing monthly cash flow. Using the freed up money one can start to put together a plan to reduce debt faster and more efficiently. There are a number of different options when looking to consolidate bills using a loan. It is important to explore each one and ask yourself which one best works for you. Understanding your options will give you a better chance of qualifying and making the right choice for your situation.

A good first logical step is to look at the different bill consolidation loan options. This is one of the most common tools used to help and generally all you need is an income and reasonably good credit to get one. Many of these lending products are unsecured and the cost will very depending on your risk profile which is something the bank will determine by your credit and ability to pay the loan back. Interest rates are generally double digits, but it depends on you and if the bank is offering any promotions to grow that side of their business.

A secured debt consolidation can actually be easier to get if you have reasonable security and even if you have less than perfect credit. Assets like mutual funds, stocks, CDs, the car can usually be used to get one of these loans. Depending on your qualification in the bank the interest rate may be slightly lower than an unsecured loan.

Consolidation home loans are similar to secure loans were a home is used as a collateral. These types of loans are usually the easiest to get even if you have other challenges like bad credit. The key with these loans are that you have equity in your home that can be utilized. The interest rates charged on these types of loans are usually the lowest and can be as low as the banks prime lending rate.

The best thing to do is to take action now and do some research on the Internet of possible lenders. Write down the contact information, organize a plan and take action as soon as possible. It's easy to let something like this go and it's better to deal with it sooner rather than later. You definitely don't want this to affect your credit and even if it has already, better that no more damage is done. As for my client who wrote the 'Bills Consolidation' email, he's on track to be debt free in another year. Consult a professional before acting on any advice or committing to any financial obligation.