Which Bills Will Be Covered? Debt Consolidation Part 3

Find out which debt you can consolidate

As you can probably guess, a debt consolidation loan won’t cover all of your bills. Debt consolidation should only be used to pay off real debt, meaning a lump sum that you owe and are trying to pay off.

If you have several large bills that you are trying to pay off, debt consolidation can help. Debt consolidation can’t help you pay your cell phone bill or your rent, but it can make it easier for you to pay those by bringing down your monthly debt payments.

Medical bills

Medical bills can be very expensive. Generally, if you can manage to make regular payments, some health care providers will charge a low interest rate. However, if you take too long to pay off a medical bill, it will be turned over to collections. Some health care providers will turn bills over to collections after only three or four billing cycles.

Bills in collections

The longer the bill stays in collections, the worse an effect it will have on your credit score. If you make an agreement with a collections agency and you default on it, the agency can garnish your wages. Not only does that mean the agency can take money directly out of your paycheck, this will probably end up costing you quadruple the amount of the original bill.

If you are in danger of defaulting on an agreement with a collection agency, debt consolidation can protect your credit score, save  your paychecks and keep those harassing creditors off your back. ... click here to read the rest of the article titled "Which Bills Will Be Covered? Debt Consolidation Part 3"