DEBT: a four letter word. It comes in many forms. It comes to haunt us all hours of the day, in the middle of the night; in the middle of the grocery store. Consolidating your debt may be the solution towards your financial freedom.


Debt consolidation is a means of refinancing, by taking out a new loan you can pay off several others. The new loan should have a lower interest rate and a longer payoff period, allowing for additional flexible spend for your regular monthly bills. This is an option that will keep the debt collectors (and lingering concerns) at bay.


DO: find the best debt consolidation method for your situation


There are several options available when it comes to debt consolidation.


Balance Transfer: If you have less than $15,000 in debt, find a credit card company that offers a balance transfer, with no annual fee and 0% interest. It is important to note that the interest rate will expire. If the complete balance is not paid off in time, you will be responsible for paying the full interest. In order to qualify, you need to have good or excellent credit. If your credit is too low to qualify for a balance transfer, we can provide you with tips on how to pay off your credit card debt.


Home Equity Loan: If you own a home and have built up some equity, a home equity loan may be available with a low fixed interest rate. You can use the low interest loan to pay off your high interest bills.


Personal Loan: Contact your bank to determine if an unsecured loan is a viable option.  Obtaining a loan with a low interest rate to pay off your high interest debt is a great solution.


Use a Debt Consolidation Company: There are a number of bill consolidation companies who will assist in the loan process and then combine your monthly payments so that you only have to make one.  When bills stack up it can be difficult to keep track of payment due dates. A debt consolidation company will simplify the monthly process. They may provide subsequent offerings including debt counseling, and even financial education programs.


DON’T: take out a loan if the interest rate & payoff date are not advantageous

It’s possible that by increasing the amount of time you’re in debt, you end up paying the lender more over time even with a low interest rate.


DO: the math!

Determine how much you need to pay each month in order to pay in full, on time. Make your payment every month. Have a plan and stick to it.


DON’T: keep the same spending habits

This is your chance ease that financial burden. Designate a fixed amount of fun money for the week: for eating out, happy hour or impulse shopping. Leave your credit & debit card at home: take your budgeted amount of cash with you to the grocery store so you can't overspend. You can stick to a budget.


With your credit debt under control, let Shrinkabill further reduce your monthly bills.  Odds are you are overpaying. Our expert negotiators will examine your existing bills to get the best price on your behalf.  With a debt consolidation program and our bill lowering tactics, you can focus on a solid budget and recover financial independence.