how does debt consolodation work...not credit cards, just past due bills....?

Answer 1

Basically, you are getting a loan that pays off all of your bills, and then you make one payment a month on your new loan with interest. This can be good as long as you continue to pay any new bills that you recieve and don't get farther behind.

Answer 2

You have already gotten the answer to your actual question. But it sounds like you want to consolidate some of your bills and keep using your credit cards. If that's your idea, it's not going to work. You'll end up with a big consolidation loan AND more debt. You're headed for financial disaster. You've got to control your money before you crash and burn. Go to daveramsey.com.

Answer 3

Opt for a debt consolidation loan: The easiest method of getting a debt consolidation loan is to utilize the equity of your home. Equity of your home is calculated and determined by the difference in the amount you have paid and the amount you owe. If the amount you have paid is more than the amount due, you can use it as collateral. This allows you to borrow money on lower interest rates. Besides, you also get tax benefit on this type of loan. Consult your tax advisor before opting for this loan.
http://debt-trap.com/category/Debt-Consolidation-Basics.html

Answer 4

Be careful which company you go to when you consolidate your current debt. You don't want to end up with a high interest loan, many people remortgage and place their debt on their current mortgage which means they pay it over more years but get a lower monthly payment.

Answer 5

the consolodation company pays all your bills for you, and then you pay the consolodation people back. most of the time at a lower or no interest. it basically takes all your bills and makes it into one with lower interest,.

Answer 6

debt consolidation is nothing but another loan. usually that loan is enough to payoff all the smaller debts you have.

Answer 7

you would need to get a loan to pay them all off and make one payment.