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What's more unnerving and bothersome than one debt? The correct answer is multiple debts; having the burden of several debts is akin to making several promises to different people and being unable to fulfill any of them. Many individuals who suffer the same fate opt to surrender and file for bankruptcy. Fortunately, there's one trick that debtors can use to their advantage and make their debts more manageable, and this is by debt consolidation. If you consolidate your credit, you basically combine all your existing debts and turn them into one credit. While it doesn't completely eliminate debt, there are advantages in using this strategy. While debt consolidation is seen as a way to combine remaining debts into one, it essentially entails borrowing from one lender, leaving the debtor with only one creditor to answer to. This may sound counterintuitive and silly, especially for those unfamiliar with credit consolidation, but there's a good reason for this. To properly consolidate debt, the debtor takes out a loan specifically to pay for all his outstanding debts, leaving him with just one credit to take care of. There are boons to debt consolidation, aside from eliminating the need for debtors to make sporadic monthly payments. For one, it allows debtors to re-roll their interest rates into something they can actually manage, instead of having to contend with multiple rates. It also saves debtors from having to pay late fees since he only needs to make one payment per month. Those applying for debt consolidation should be careful of which lenders to trust though. Some lenders trick borrowers into accepting a deal that has even higher interest than the combined rates of the original debts, while others accept the payments from the borrowers without actually paying back the original creditors. Debtors should carefully plan things out with a trusted financial professional before jumping into consolidation. Unsecured debt is a looming shadow that threatens to consume borrowers if left unpaid for too long; it gets worse if there are multiple debts to deal with. Thankfully, there's a way to lighten the load of multiple debts, and that's through debt consolidation. More about debt consolidation can be found at credit.about.com/od/debtmanagementsolutions/a/waystoconsolidatedebt.htm.
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