Best Way to Consolidate Debt

Learn the best way to consolidate your debt.

Thinking about consolidating?

Want to avoid all the costly mistakes and errors people make with this solution so it doesn't plunge you further into financial trouble and ruin your credit in the process?

Then you've come to the right place.

On this page, you'll discover 3 simple steps that show you the best way to consolidate debt. You'll learn what to do before, during and after consolidating. This will help you avoid many of the risks normally associated with consolidation.

Making the wrong decision can have financial ramifications for many years to come. But if you make the right decision, you can erase your credit card debt a lot faster and get back to a healthy future financially. 

So if you're sick and tired of dealing with arrogant credit card companies or debt collectors, then pay close attention to the info on this page. It could change your life for the better.

Let's begin...

1) Decide If Your Really Need to Consolidate

Too many people rush into this solution without realizing that they might be able to pay off debt with no consolidation needed. No outside help required.

So your first step is to determine if you really need to go down this path.

This is one of the most important steps in the process.

How do you do it? How do you know if you should go the consolidation route?

The answer to that is simple; you must first attempt to pay off debt on your own. If you can pay off the debt on your own, there's no need to look for a debt program from another firm. It's really that simple.

This strategy is the safest way to go and can save you the most money now, and in the long run.

Here are some quick tips to help you.

  • Start by creating a budget and keeping track of every penny you earn and spend. Then, get rid of any unnecessary expenses that you may have. Whatever expenses you don't need, eliminate them.
  • You should even try selling your old junk to raise money for paying off debts. Anything you have lying around that you don't use anymore, try selling it. The money can really add up.
  • Lastly, consider getting a second source of income. This is another one that can really cut into your debt and help your cause tremendously. Just an extra $100 a week can have a big impact.

Now, if after doing all of that, you still can't meet your monthly obligations, then you can start thinking about how to consolidate debt through a third party program.

Which brings us to...

2) Find the Right Consolidation Plan (If Needed)

So you've tried paying your monthly debt by yourself. You've created a budget, cut costs, and even tried earning more money.

Yet, you're unable to pay off your debts.

That's when you can choose to go with a consolidation plan from another firm. You have 2 types of plans to choose from. The first option requires you to get a loan and borrow more money (debt consolidation loan).

The second option doesn't require more borrowing. And you can implement this second option more than one way.

Here's your three best options for consolidating...

You should try the balance transfer cards first.


Because if you qualify, it can give you zero (or close to zero) interest rates for the first 6 to 12 months. With this strategy, you transfer the debt on current credit cards to another credit card with the much lower rate.

You accomplish 2 of your main objectives. You consolidate credit card debt and reduce your interest rates.

However, you will need a good credit score to pull this one off.

Debt consolidation loans should be your second option if you don't qualify for a balance transfer card. They are a little more risky than balance transfers, but still worth a look by you.

With this loan solution, you get another loan with much lower interest rates. Your new loan pays off all your other debts... so now you have one loan to payoff at a lower rate of interest. And like the first option above, this too requires good credit.

Debt Settlement is the best alternative for anyone who can't qualify for one of the 2 options above. This type of program does not require you to borrow more money. And you don't need great credit... so you are more likely to be accepted into a program.

To learn more about the options listed above and all of the other options available to you, check out our...

Our program guide shows how each option works and why it might fit with your current debt position.

You'll be able to get a good feel for which plan works for you and which one you can qualify for.

3) Make Budgeting Permanent

If you don't stick to a budget and cut back on needless spending, then your debt reduction plan will fail, no matter which program you chose to go with.

One way to better organize your finances is to use a spreadsheet to track actual spend vs. budget amount.

Once you assemble your complete budget and have all of your numbers set, use a spreadsheet to stay on top of it. Have columns setup for both your actual spend and the amount you initially set. By following this simple formula, you'll be able to keep yourself on the right track.

It's crucial that you know exactly where all of your money is going.

Debt relief options from other companies can only take you so far. Eventually, you have to do a good job of managing your money.

If you consolidate your debt and manage your monthly expenses better, you can succeed. In fact, you can thrive again.

Spending smarter leads to a richer life.

It just comes down to you sticking to the plan and chipping away at it every day. Get motivated, get going, and good luck.

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