Help with Debt and Credit Consolidation - Help Yourself, First!

There are ways of negotiating with creditors without consolidating debt. If you are able to do that, you will be better off than if you do consolidate your debt.

Credit consolidation should be considered before bankruptcy, but repairing your own credit should be tried first.

First, get a free copy of your credit report from all the major credit bureaus. You can get one copy every year for free! Go through it with a fine tooth comb. Write down the names and addresses of every creditor, including collection agencies.

If you don't recognize a debt, contact that company first. It could be that the debt has changed hands and accrued interest without your knowledge or it may not be your debt at all. If it is not your debt, you can insist that they verify it. Verification means they will get original information from the people who made the loan. If they can't do this within 30 days, you can then insist it be taken off your credit report.

Next, call up the collection agencies one by one and see if you can arrange a lump sum payment for substantially less than you owe. Sometimes a collection agency will take it, especially if you relate how close you are to bankruptcy. If they accept it, ask them to send you a letter with the details of the deal.

Call up current credit card companies and ask if they will lower your interest rate. Again, mention that bankruptcy might be in your near future.

Most of the time, the thought of losing the money altogether will give creditors incentive to work with you. If you are unable to negotiate for lump sums and lower interest rates, then you should give debt consolidation a try.

First, consider non-profits. See if there is anything they can help you with without requiring a loan. If they cannot help you at a reasonable price, consider a debt consolidation loan.

Be careful when choosing a company. Read the reviews about them and check the Better Business Bureau site online for any reports about them.

Seek help for your debt and raising your credit score with consolidation before you take the road to bankruptcy. You will be glad you did.