Because bipolar disorder is a part of your life, you may be having financial problems.  In fact, you may be in debt, and not know what to do to lower that debt.  One thing you may want to consider is credit consolidation.

 

Credit consolidation is when you place a number of credit balances onto a single account.  For example, if you have three credit cards with balances of $1,000 each, but are close to your max.  Say you have a fourth card that has a zero balance but a maximum credit of $5,000.  You might decide to transfer all three balances onto that one credit card.  This way you would only have the one payment each month.

 

You might also want to use credit consolidation with your car payments, student loans, and personal loans as well.  For these you may want to hire a company and pay them a fee to negotiate lower rates with your creditors so that when you consolidate, you are making one single payment to cover several types of debt.

 

The benefit of consolidating credit cards is that it can make paying bills a little more streamlined.  Instead of having several due dates with different minimum balances required on varying interest rates, it brings all the debt into one rate.  In many cases, you can end up paying less per month on your credit cards than when they were separate bills.

 

The greatest warning about credit consolidation is that the balance transfer an end up costing you more if the interest rate is higher on the absorbing card.

 

Paying a company to consolidate your credit can also cause you to spend more money than you would like.    You could end up paying a lower monthly amount to cover all the bills, but that could include a fee for each account, usually at 10 percent per balance.  If you have many accounts to consolidate, these fees can add up.

 

Experts say that you can pay off your debt faster if you try to refinance other loans you may have in order to pay off debt.  For example, you might be able to refinance your car loan by three percent.  If you negotiate your interest rates with the creditors and apply that three percent savings, your debt can go down a little faster.

 

If you transfer balances and close those accounts, however, make sure that you tell the creditor to list them as closed by the customer.  Otherwise, a future lender may think your account was a settlement or charge-off by the creditor.

 

As you can see, credit consolidation can be the best way to help you get out of debt, and to get out of debt faster than any other way.

 

SOURCE:  www.ehow.com