debt consolidationMany people take the New Year as an opportunity to come up with financial resolutions that will help them get their lives in order. Often the most popular financial New Years resolutions regard the successful consolidation of debt. Whether you are struggling with a little bit of debt or a mountain of unpaid bills, there are ways to consolidate that debt and make it much easier to manage. Read on to find out which of these four debt consolidation resolutions will work best for your situation and get started down the road to financial recovery.

Debt Consolidation Resolution #1: Obtain A Personal Loan

If you’re dealing with a reasonable amount of debt, it may be possible to go through a local or national bank or credit union to borrow a personal loan. You can use this money to pay your creditors and then pay the reasonable monthly loan payment instead of trying to juggle all of the different payments over a long period of time.

If a bank loan is not a possibility, family and friends are often willing to lend a helping hand to a loved one in need of financial assistance. However, weigh this option carefully, as borrowing a personal loan from loved ones has been known to cause relationship strain.

Debt Consolidation Resolution #2: Balance Transfers

When you open a new credit card account, there is often the option to transfer other balances to the card, consolidating debt into one easy monthly payment. If you can obtain a new credit card, this can be a good method, as many companies provide extremely competitive interest rates for a select period of time, in some cases up to 18 months, for balance transfers.

Debt Consolidation Resolution #3: Take Out A Second Mortgage

Consolidating debt by taking out a second mortgage is a option that works for some, but requires a bit of research. For many consumers, the interest they would pay on their second mortgage is higher than the amount they pay for their late payments on bills. Be sure that you aren’t trading one interest rate for something much more costly in the end.

Debt Consolidation Resolution #4: Seek Help From Debt Professionals

There are many different types of professionals available to help people struggling with debt. Consumer credit improvement services can help calculate doable payments. Lenders who specialize in loans borrowed specifically for debt consolidation are a dime a dozen, and as long as your credit hasn’t reached the lowest of the low, they can help. If you’re past what feels like the point of no return, consider hiring a bankruptcy attorney to help you figure out your next move towards financial well-being. We can provide you with the knowledge and expertise you require to regain your footing and get the fresh start you deserve.

Signs That You May Need Help

You know you’re in over your head with debt if you:

* Have borrowed money to pay for life’s necessities like food, gas, or household items
* Are consistently making payments late
* Pay more than 20% of your monthly income to creditors
* Have to pick and choose which utilities to pay each month
* Only pay the minimum payment amount on your credit card bills
* Feel extremely stressed about financial matters

If this sounds like you, take the first steps towards financial stability and make a resolution to consolidate your debt this year.