Listed below are some of the top ways to consolidate debt. If executed properly, they have the power to make you debt free.

Self Repayment Plan

Self Repayment Plan is a do it yourself approach to debt consolidation. If you do not want to hire a debt consolidation company and want to consider debt consolidation on your own, self repayment plan is for you. With the correctly cherry picked steps, you will be able to overcome debt. Budgeting plays a very crutial role in self repayment plan. You will need to add up your earnings and expenses in a given month and figure out where the extra green has been spent and aggressively work on reducing the expenses. In some situations, a part time job might just be the answer to pay off your debts and earn a debt free living. If you are determined to find a solution to your debt problems, self repayment plan is your best bet. If the plan is set up correctly and you are motivated enough to follow you, you will start to see results within a few months.

Debt Settlement

Debt Settlement involves negotiating with your creditors on your debts. Either you can do it yourself or hire a debt settlement export to do it on your behalf. Debt settlement companies specialize in reducing or eliminating debt via the debt settlement process. A good negotiator will be able to reduce your balance as much as 40%. Most of the reputed debt settlement companies will be candid about their fees but make sure you understand the fee well enough so there are no hidden surprises later on in the debt settlement game.

Debt consolidation loan

If you have multiple debts to be paid off, debt consolidation might work well for you. For example, you may have credit card debts, auto loan, boat home, personal loan, store cards etc. All these can be consolidated into a single loan with a very low interest rate. These loans with low interest rates are debt consolidation loans. The entire purpose of a debt consolidation loan is to lower your monthly interest and thereby reduce your monthly obligation. You can also consider extending your repayment period to lower your monthly obligation on this loan.