Debt consolidation can be an easy way to help you manage your debt. Your debt will still exist, but it will be easier to manage and pay off. If you are swimming in unpaid bills and finding it extremely tough keeping up, consider these great tips for debt consolidation.

If you’re trying to pay down your debt, try borrowing a bit from your 401(k) or other employer-sponsored retirement account. Be careful with this, though. While you’re able to borrow from your retirement plan for low interest, failing to pay it back as you agreed, losing your job, or being unable to pay it all back, the loan will be considered dismemberment. Your taxes and penalties will then be assessed as for why funds were withdrawn early.

Avoid debt elimination arbitrators. These companies love to claim that your debt can be eliminated, though in reality they know that only bankruptcy can result in total elimination. The best these companies can do is reduce the debt you owe. Surprisingly, this is no different than you could do by calling and negotiating with creditors yourself.

Before going with any specific debt consolidation company, check their records with the Better Business Bureau. There are a lot of sketchy “opportunities” in the debt consolidation business. It’s easy to go down the wrong path if you aren’t careful. The BBB and its reports can help you weed out the bad from the good.

Make sure the debt consolidation firm’s counselors are qualified. Is there any organization that has certified these counselors? Do they have the backing of reputable institutions to help prove their strength and legitimacy? This can help you sort out the good companies from the bad.

Before choosing a debt consolidation company, ask how the counselors of the company are paid. If the answer is “on a commission basis”, then you may be best to look elsewhere. Someone working for commission will say or do many things that are less of a help for you and more of a help to their overall income.

Do you have life insurance? If so, consider cashing out your life insurance policy in order to repay some of your debt. Get in touch with your insurance agent and determine the amount of money you can obtain against your policy. You may be able to borrow against your investment to pay for your debts.

If you own a home, boat, motorcycle, or the like with a clear and free title, you may be able to use a title loan. Be sure that you are getting the rate that you want. Make sure you understand the terms so that you know whether you get to keep your property or if it’s turned over to the lender for your term of loan. Understand your payment schedule, as failing to meet them can terminate the ownership of your property.

When you are trying to resolve your debt as easily as possible, then debt consolidation can help. After the host of great tips you just read, now is the time to finally take care of your debt by combining everything into one simple payment. Use your new knowledge to reduce your own debt.

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