This way, you unify all of your debts,
with their varying interest rates, into one debt with a single interest rate. If
you consolidate bills, you remove a lot of complications from paying your bills.
First of all, if you consolidate bills, you remove the hassle
of having different interest rates.
This makes payment easier for you. If you
have bills that have high interest rates, you may not want to continue having
that interest keep compounding on you. If you consolidate bills, those high
interest rates will be replaced by more reasonable ones. This would give your
pockets a break. (And we all know how much our pockets need breaks.)
Another is the time period. If you consolidate bills, you buy
yourself more time to pay your obligations. This means you can find more
opportunities to make money. So how do you consolidate bills?
Well, here are some tips:
1. Loans -This would mean taking out a mortgage on your house in order to get rid of all your debts.
Be warned, however, this does not mean you can forget about your debts.
Some people, when making use of this technique to consolidate bills, are lulled into a false sense of security. They think that all of their debts are in order. However, if you feel this and start spending again, you will only keep increasing your original debt.
If you also forget to pay that loan used to consolidate bills, you can end up homeless.
And that is one thing, you do not want, right? So be careful about your spending and remember that you only bought some time.
2. Credit card -in this technique, you talk to major credit card companies in
order to consolidate bills with them. In using this technique to consolidate
bills, you open up competition among the companies and you may end up with a
very low interest after you consolidate bills. Remember to be very clever in
dealing with these companies. You need to give them the idea that the other
companies are offering you better deals.
This way, you can keep getting offers until you find the interest rate you are
comfortable with. The credit card company you choose will then send you a new
credit card with all of your bills on it. However, you should never use this
card, as that would only compound your problem.
If you consolidate bills, you
have found a temporary solution to a potentially disastrous problem.
Remember that fact and you can find your self-control. You may be able to
consolidate bills, but you need to understand that the bills only transform,
they do not disappear. If you consolidate bills, you need to understand that you
are only opting for a more convenient way to pay those debts, and you are not
making those debts magically disappear.
So you still need to control your spending. Be a master and not a slave to your
wants. And that is the best advice you can give yourself.