When you find yourself in debt that you are unable to manage, it can not only a sever strain on your finances, but it can negatively impact both your physical and emotional well being. For many people, the prospect of declaring bankruptcy can be upsetting as they know their credit rating will be negatively impacted and they will be seriously restricted in how they live their lives. However, there is one debt management solution that can help people avoid bankruptcy. This debt management solution is called Debt Consolidation.

Debt consolidation offered by credit counseling agencies can help you avoid bankruptcy but also stop all of those annoying creditor phone calls at all hours of the day and night. Debt consolidation has helped many people with overwhelming debt obtain financial freedom by implementing a plan that helps them pay off their debt in an achievable way, When you participate in a debt consolidation program offered by a credit counseling agency you will be combining all outstanding debt into one monthly payment that will paid each month until all of the debts are paid off. The amount of time it takes to pay off the debt will depend on how much you owe your creditors.

When you sign up for a debt consolidation program, you will meet with a credit counselor. Together, you will organize all of your debts to determine how much you owe. The credit counselor will determine your best option and how much you can afford to pay each month. Then, the counselor will contact the creditors and submit a proposal where you will pay a specific amount each month until the debt is paid off. Once the creditors agree, you will send only monthly payment to the credit counselor each month and the counselor will disperse the payments until the debt is paid off. This means you basically have one payment each month with one interest rate. The amount saved on the interest charges alone will drastically cut down the amount you owe. This is a much easier debt management solution and you will pay off the debt much faster. You will have a great deal of anxiety and stress alleviated and over time, you will see your credit history improve.

Debt consolidation is not the only service offered by a credit counseling agency. In order to stay out of debt in the future, you have to learn how to better manage your finances. The credit counselor will teach you how to create a realistic household budget. You will also learn how to prevent the accumulation of credit card debt. As well, you will know how to spend more wisely and avoid buying things that are too expensive and learn how to shop more wisely. When you participate in a credit counseling program you will learn how to live a fiscally responsible life. You will basically get a fresh start in financial management that you can use for the rest of your life.

If you have found yourself in a situation where you have got behind on you bills and you have an overwhelming amount of debt, debt consolidation may the right solution for you, especially if you want to avoid bankruptcy,. The advantage of participating is a debt consolidation program is you will have only one monthly bill and interest charge, you will improve your credit history, and you will learn how to mange your finances better. You will feel better about your life and yourself, reduce stress, and you will achieve a debt-free life. If you are in debt and unable to make your monthly expenses, debt consolidation program offered by a credit counseling agency is one debt management solution that is well worth exploring.

Author Bio: To get back your financial independence consider the Ottawa debt consolidation and debt settlement Ottawa services provided by InCharge Canada.

Category: Advice
Keywords: debt, debt consolitdation, debt managament, finances, credit, credit management, debt counselling