Written by: Nick Bregozzo
Have you worked yourself into a financial pitfall of debt that you simply can’t seem to climb out of?

High credit card rates and fees, personal loan payments, endless bills, and countless other expenses can sometimes seem to pile up into a mountain of debt that only seems to keep growing as you keep sinking further and further into a pit of financial burden.…  Don’t panic.…  There is help in the form of debt consolidation companies that can assist you in merging your various debts into one simple payment.…  The right debt management program may even be able to reduce your high interest rates on various payments into one convenient lower interest payment.

The following tips should help you in selecting the debt consolidation company and plan that is right for your particular situation:

1.… …  … Check your Credit Report: The first and foremost thing you should do when you find yourself in the pitfall of debt is to check your credit report.…  You can obtain an annual free credit report from any Veda Advantage (formerly Baycorp Advantage)

You should be able to easily obtain a free copy of your credit report by sending a written application to the agency.…  Once you have received a copy of your credit report, examine it closely for accuracy.…  Check personal details and the age of any credit default listings.…  Defaults cannot be listed after they are 5 years old.…  Any discrepancies or inaccuracies should immediately be reported to the credit reporting agency.…  Even the smallest mistakes, such as a misspelling of your name or an inaccurate address, can have a major impact on your credit score.

2.… …  … Locate a Reputable Debt Consolidation Company Don’t just use any debt consolidation agency.…  Do your homework and use your resources to research debt management companies before selecting one to help you work your way out of debt.…  Check with friends, family members, and anyone you may know who has had personal experience with a debt consolidation company to get references on the agency.…  Look online for information about various debt consolidation companies in your area.…  Avoid predatory lenders and be aware that ”non-profit” doesn’t necessarily indicate that the debt consolidation agency is a good one.

3.… …  … Check Various Debt Consolidation Programs. Once you have located a few reputable and reliable debt management agencies, discuss various plans to find a debt consolidation solution that is ideal for your particular situation.…  Select an agency that will willingly work with you to find rates and payments that you can reasonably commit to.…  Be certain that you understand all terms and conditions of the plan before agreeing to it.

4.… …  … Consolidate your Credit Cards into One Single Payment: Credit cards are one of the primary culprits of personal debt. Your agency should work with you to try to get all of your credit card payments consolidated into one monthly sum.

5.… …  … Try to Negotiate Lump Sum Payments: Some creditors will be happy to get some payment as opposed to none when there are numerous defaults to consider.…  In fact, many may accept as much as 70% off the original debt amount if you are able to provide the remaining amount due in one lump payment.…  Negotiate these lump payments early in an effort to reduce your debt by as much as possible before consolidating it into one monthly payment plan.

6.… …  … Relax: Perhaps the easiest thing to say, but the hardest thing to do when you are attempting to crawl out of that pitfall of debt, is to relax.…  Financial burdens are extremely frustrating and cumbersome, but working yourself into a panic is not going to be of any benefit.…  In fact, it may end up drawing out the process by adding additional financial burdens.…  It is well known that stress is a major cause of many health ailments and conditions.…  Working yourself into a high level of stress may just end up adding medical expenses to your pile of debt. Debt consolidation will reduce your interest rates, lower monthly fees, stop those harassing phone calls, and wave your late fees. So lean back, relax, and realize that you are on your way to complete debt relief and financial freedom.