Best Tips to Consolidate Your Loans and Become Debt-Free Completely

Consolidating your numerous loans and paying them off under a single account is a practical way of reducing your rate of interest. Then, there are many scammers to rip you off financially if you are not careful. We are not saying all lenders are the same but there are a couple of fly-by-the-night lenders to avoid. Consolidation is one of the best ways to become debt-free quickly. However, you need to maintain some discipline when making payments, spending, and avoid looking at the wrong places. If you do not know the ins-and-outs of consolidation, you will end up spending more money than what you have borrowed in the first place. 

A credible debt consolidation provider helps you pay your small loans. You can borrow $4,000 as a consolidated loan and pay your small multiple debts of the same amount with a low rate of interest. This way, you pay less or the same amount and that too quickly. 

According to an article published on, debt consolidation is the process of converting multiple high-rate debts into a low-rate one to minimize the total amount of interest. That is the reason why homeowners with huge credit card debts with unused borrowing capacity on their property can choose a consolidated loan. It sounds good, right? Therefore, if you are looking for a consolidated loan, here are some of the best hacks to consolidate your multiple loans and become debt-free forever: 

Choose a reliable debt consolidation agency 

There are reliable debt consolidation firms offering services like consolidation, negotiation with your creditors, and credit counseling as well. Then, these agencies offer these services at a reasonable cost since they have flexible payment terms and conditions. Then, scammers and shady consolidation firms may lure you with services that sound too good to be true. Therefore, you need to do your research and tread with care. After all, you need a consolidated loan that works for your financial situation. 

Reputed consolidation firms will charge you no initiation fee or overwhelm you with hidden costs. If you are in a financial dilemma, these providers will understand your situation and work out a solution to offer you a consolidated loan without ripping you off financially.

Avoid falling in the trap of scammers because there are many of them to loot your money. Take some time off your busy schedule and research. Make a list of at least five consolidation firms with good customer reviews. Next, call each of them and try to get a consultation depending on your situation. Inquire how they can help you without you having to pay more than you have borrowed. Choose the firm that is in your best interest.

A credible debt consolidation firm will listen to you attentively at least for 45 minutes to an hour. Avoid any agency that wants to take your money and put the amount in some plan instantly. These are scammers with no intention to help you dig out of your debts. You can visit websites like and look at their consolidation terms, rates, and conditions. 

Think about how you will repay a consolidated loan 

There are many ways to pay off your consolidated loan. Use the money from your savings account, do some job besides your regular one to make some extra cash, or use the money from your spending plan. Again, you can tap into your hidden earnings. You might be wondering what that means. Think about how you can do cost-cutting ruthlessly on daily expenses and bills. It could be your monthly grocery bills, vehicle insurance, or an additional land phone bill. Please note that we are talking about cutting back on your expenses that you can postpone for some time until your debt is repaid conveniently.  

Instead of talking for hours on your phone, you can reduce the call time to about five minutes. Just imagine how much you can save this way, hundreds of dollars. Then, if you have a gym membership, you can avoid that for a while. Exercise at home, jog in the morning, do cycling, but avoid paying an expensive gym fee that you cannot afford when you have debts to repay. Stop using your credit cards until you are debt-free and avoid subscribing to Netflix and HBO at the same time. Avoid one. You can resume watching later after you are debt-free forever. 

Then, you need to negotiate or the consolidation firm will do so on your behalf. Call your creditors and tell them that you like being their customer and do not want to ruin the business relationship due to some monetary problems. Tell them what your creditors can do to reduce the rates a bit. These little things matter when it comes taking a consolidated loan and repaying the same fast. 

Stay away from temptations 

A reliable debt consolidation firm will do all the groundwork, call your creditors, negotiate about the rates of interest, and work out a plan to consolidate all your debts into one monthly payment system. Then, the challenging part is repaying the loan. You need to work out and find a solution to the problem. Avoid any kind of temptations like using your credit cards and buying expensive stuff that you do not need now. The best way is putting all your credit cards in a box and locking it in your safe. It all depends on your willpower to control your desire to use the cards. If you do so, it will help you to make your loan payments easily without entering into new debts. 

It is all about controlling your temptations and avoiding impulse purchases. Yes, self-control matters a lot when you take a consolidated loan. That is because there is no sense in opting for debt consolidation and using your credit cards at the same time. It will add to your existing debt, thus affect your repayment plan. Your goal is paying off your loan as soon as possible. 


It is easy to panic and avoid your creditors. Face your debt instead. Use these tips to repay your consolidated loan and lead a debt-free life.

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