When consolidating your debt, you have to make some decisions. You have to be willing to live smarter after experiencing your financial difficulties and persevere through the rebirth of your financial livelihood. What does this mean exactly? Consolidating debt can end up badly for people who don’t know the proper channels to go through.

Debt consolidation is usually made up of a large loan taken out to pay off the small credit card debts or other loans. Paying off the multiple loans allows a borrower to attain a lower interest rate on the payments and save their cash.

What kind of debt load do you have? Is it an extremely large debt or an easily surmountable minor problem? You have to total your debt to an exact amount before you can decide the best course of action. Larger debts have different guidelines than smaller ones, so be sure to come to a grand total before you decide how to handle it. 

Credit cards have tons of hidden dangers and additional fees. Unless you are spending cash, a credit card may be your only other option besides checks. Why not forego the credit cards altogether and practice some responsible spending habits?

This will save you from the financial woe that ensues when a credit card bites back. High interest rates and the freedom to exercise exuberant spending habits are two of the most characteristic down sides of owning a credit card.

Knowing the root cause of your debt will help you to stay out of debt for good. Eliminating the key factors that are holding you down will ensure you never have to experience the difficulty of financial hardship again. And how are your paycheck stretching abilities? Tip-top shape? Probably not if you’re in debt! Find out how to make every paycheck add to your financial situation. Buy in bulk, buy cheaper products, do whatever it takes to eliminate that debt!

There are also many debt consolidation pitfalls to look out for. Some debt consolidation strategies involve the mortgage of your home to overcome your previous debts. What these companies don’t tell you could sink your ship. You could lose your home and everything that goes along with it. All debt consolidation strategies involve some level of risk. Be careful which methods you choose to overcome your financial hardships.

Moe Bedard
My name is Maurice "Moe" Bedard. I am the founder of America's #1 Mortgage Forum, LoanSafe.org. My online work has been featured in the New York Times, LA Times, Fox Business, and many other media publications.