Poorhouse Schmorhouse: How Debt and Bill Consolidation can save your hide

This nation runs on debt, and it isn't just the massive amount of money we owe to China that has many Americans shaking in their collective skin. The sad fact is that the vast majority of Americans suffer from debt in some form or another. This isn't completely our fault, however. For years, creditors and lenders have been more than happy to allow us to buy now and pay later, leading in part to the financial meltdown that you may have heard of. Fortunately, with a little research and luck, debt and bill consolidation can help you dig yourself out of your monetary grave and leave you standing on solid, if shaky, ground.

There are several ways to use debt and bill consolidation to your advantage. The easiest and most obvious way requires little to no intervention from third parties. Suppose you owe money to three separate credit cards. You more than likely pay a relatively high interest rate but, should you get another credit card with a considerably lower interest rate, preferably a zero percent introductory rate, you can transfer the high balances with the high interest rates on your other card onto the card with a minimal APR. This may seem counter-intuitive, but it can save you money as well as help you avoid digging yourself deeper by only paying the minimum monthly amount.

Many people, though fewer these days, have found debt relief by taking out a home equity line of credit, if they qualify for such a thing. Thanks to the low interest rates of loans in this genre, it is possible to get your head back above the waters of financial destitution much more quickly than by paying an arm and a leg with the massive interest rates that are still making credit card companies rich and consumers poor.

The last straw, though certainly not a horrible option, is to consult a debt relief company. These companies carry a lot of clout and can help negotiate a lower interest rate with the companies that you owe money to. Typically, you'll pay the relief agency directly, but this process requires much research on your part. A third party that you owe money to may not be your preferred route, but in many cases it is the last option at the disposal of many people. In the end, perhaps the most important and useful advice is to simply cut that credit card up! It may seem like a very basic solution, but it is one that far too few of us take.