TIP! Think about bankruptcy as an option. Bankruptcies of all types have a negative impact on your credit rating.

What do you think about debt consolidation? This article can help you out if you are considering it. Debt consolidation can be a good way to help you manage your debts when you know what you’re signing up for. Not all companies are equal, so neither are their offers. This article will provide you with the knowledge that you need to make a good decision.

TIP! It is very important to do some background research on different debt consolidation companies before hiring a counselor to help you. If you do this, you can make a more informed decision so that you know you’re going to be in a good place with the professionals you’ll be working with.

Never select a debt company simply because they claim non-profit status. Non-profit does not equate to good business practices. If you wish to figure out if companies are good at what they do, see if you can find them on BBB’s website at www.bbb.org.

TIP! Do not borrow from a professional you know nothing about. Loan sharks know you need them.

Consider applying for a low interest credit card in order to consolidate debts. You may be able to save money on interest charges this way. If you consolidate things onto a card with an introductory low interest rate, then pay it off before that low rate expires.

TIP! When consolidating, think about what caused this to begin with. After all, you don’t want to end up in this position five years from now.

You might access your retirement funds to repay high interest debts. It’s crucial that you pay back any money to your fund that you take out, though. You will be required to pay tax and penalty if you cannot.

TIP! You can borrow money from a friend or family member in order to consolidate your debts. Before you do so, however, carefully consider the impact that such a loan could have on your friendship, particularly if you run into trouble paying it back.

Look for individualized payment plans with any potential debt consolidation company you seek to do business with. A lot of companies do one standard plan, but that is not good because your budget may be different than other people’s. You need a company that is going to provide you with specific and individualized plans. You will end up spending less over the long haul even if the initial cost is higher.

TIP! Negotiate your debt during the debt consolidation process, before you agree to anything. Check to see if your credit card provider will lower your rate of interest if you stop using the card.

Make sure that you fill out all necessary documentation accurately. This is when you’re going to have to pay close attention to things. Errors can result in the process being delayed, so be sure that you have filled everything out correctly.

TIP! When you are interviewing a debt consolidation company, inquire about any fees they may charge you. All fees should be clearly stated and explained so that you can assess the total cost of them.

Try to negotiate with your lenders prior to considering debt consolidation. You could ask creditors to reduce your interest rate if you offer to stop using the card and pay down the balance. You can’t be sure what they’ll offer.

TIP! Any time you do business with a debt consolidation company ask, them where they are located. Some states don’t require credentials or licensing to begin these companies.

Ask the company about what their privacy policy is. You’ll want to know how your private information is being stored. See if their computer system uses files that are encrypted. If they don’t, your files might be available to anyone, which could lead to identity theft if their system is hacked.

TIP! The debt consolidation companies in Maryland and Florida are not required to be licensed. Avoid working with counselors from these states unless you really have to.

With any luck, you are prepared to move forward and consolidate your debts. The article you just read should help you make the right decision. Don’t let that debt overwhelm you! Instead, take measures to resolve your debt today.