How to Consolidate Your Accounts into One Bill

Debt is difficult enough without having to manage multiple accounts and many different creditors. If you’re like most consumers, you probably have several credit cards with balances on which you pay every month. More than likely, these cards have different payment amounts, due dates, and creditors, and you have to remember when to make what payment to which creditor. If you’ve gotten overwhelmed with too many debts, No Debt Today can alleviate your payment burden by helping you combine your accounts into a single bill. Read on for more information on how you can bundle all of your debts into one payment with debt consolidation.

Method #1: Consolidation Loan

The first way to combine all of your accounts is by taking out a consolidation loan from a bank or credit union. The consolidation loan may be unsecured, meaning no physical property is attached to the loan, or secured, meaning collateral is required in order to obtain the loan. With both types of loans, the borrower uses the proceeds to pay off old debts. For example, you might take out a home equity debt consolidation loan of $25,000 to consolidate your credit cards. You would use the $25,000 to pay off all of your credit card balances and then make payments on the home equity loan every month. In this way, you’ve taken the many accounts you used to carry and combined them into just one bill, your consolidation loan payment, per month. We’ve outlined some of the benefits and pitfalls of debt consolidation loans below:

• Must have good credit in order to qualify
• Loans usually have relatively low interest rates
• You risk losing your collateral with secured consolidation loans
• You must take out new debt in order to pay off old debt

Method #2: Credit Card Loans

Credit card loans are another strategy you can use to bundle your accounts. Also know as balance transfers, credit card loans allow cardholders to move high-interest debts to a single card with lower interest. For instance, if you have a balance of $2,000 on each of your three credit cards, you can apply for a new card with a balance transfer offer of 0% APR for six months. You would then move the total of your other balances, $6,000, to the new card in order to save on interest. Here are some of the pros and cons of the balance transfer consolidation method:

• Balance transfers are easy and can be completed online
• Low interest rates do not last
• Card issuers charge significant fees for balance transfers
• Requires you to take on new debt

Method #3: Professional Debt Consolidation

No Debt Today offers the most effective and affordable way to bundle all of your accounts into one bill: professional debt consolidation. With this method, you sign up for a debt consolidation program that adjusts your interest rates and packages your various debts into a single monthly payment. Once your accounts are consolidated, you will send just one payment to your consolidation service every month. Your consolidation service will handle the distribution of the payment to your various lenders, so the hassle of multiple payments is eliminated. Bundling your accounts with No Debt Today can offer the following benefits:

• No new debt is acquired
• The consolidation service pays your individual creditors for you
• Easy sign-up process with no loan applications
• Tackle high interest rates and large debts in a reasonable amount of time

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