We all know how difficult it is to stay ahead of everyday bills. Perhaps you are finding it difficult to stay one step ahead with payments to creditors? As with most of us, I daresay you find you have too much month and too little money! There are ways of reducing your burden of debt and taking advantage of low interest rates, however – methods such as consolidating bills which have high interest rates into a single, affordable payment.Consolidating your debts will go a long way to avoiding the harassment from creditors and collection agencies alike and put you firmly back in the driving seat – in full control of your finances and payments to your creditors. There is a plethora of different methods of consolidating your debts and paying off bills: this will become clearer as you read on. Basically, there are 4 ways to consolidate multiple debts into a single monthly payment. Below I have provided you with an overview of each consolidation methods:1. Balance Transfer
2. Debt/Bill Consolidation Program
3. Personal Debt Consolidation Loan
4. Secured Debt Consolidation LoanBalance TransferThis option is meant specifically for individuals who need to consolidate personal credit card debts. If one of your credit cards has a low interest rate but carries a large credit limit then it is possible to transfer balances from other credit cards to this one, thereby helping to reduce your debt burden to some extent. It would be advisable, however, to ensure you read through the terms and conditions associated with the balance transfer thoroughly, prior to transferring any balance onto another credit card.These credit cards with low interest rates, invariably offering 0%, enable you to transfer balances from other cards: when you do this you will be charged a balance transfer fee which is generally in the region of 2 to 4% of the balance transferred. The 0% rate usually lasts for the period of 6 to 12 months, after which the interest rate is likely to be increased. It is at this time, when interest rates increase, that you look to transfer the balance on this credit card onto a new credit card offering 0% interest. This is how you make your credit card work to your benefit.You do have to adhere to certain regulations when you transfer your balance to a credit card offering 0% interest. As an example, you may not be able to purchase goods with this credit card and if you attempt to do so, the 0% interest rate becomes null and void and you will find, as a result, the interest rate on this card will probably go sky high!Debt/Bill Consolidation ProgramYou may not be in a position to apply for a balance transfer on your credit cards for one reason or another, in which case you would be better advised to seek professional help to consolidate your debts. Try applying to one of the online consolidation services to arrange to consolidate your bills. These services provide bill consolidation programs that will make it much easier for you to pay off your debts.The first step, once you apply for a bill consolidation program, is for a Debt Consultant to review your full financial situation. The Debt Consultant will then liaise with your creditors in an attempt to reduce the interest rates on your accounts. Reducing or freezing the interest rates on outstanding bills goes a long way to help make your debt repayments affordable. The best thing about these consolidation programs is that they relieve you from the stress of juggling several payments together.Personal Debt Consolidation LoanThe concept behind this kind of loan is to lump all your outstanding bills together – regardless of whether they are credit cards, payday loans, student loans etc – and then, from the money your receive from the personal debt consolidation loan, pay off each one in a single lump payment. The advantage of a personal debt consolidation loan is the single low monthly payment you make, together with an interest rate on a single loan as opposed to interest rates on a number of bills mounting up into lots of unmanageable payments.Secured Debt Consolidation LoanYou need to have collateral in order to be accepted for a secured loan. Basically, these are home equity loans which can be used to pay off all your debts using a large lump sum you obtain with this secured loan, effectively ending up with just a single payment – that of the secured debt consolidation loan. As long as you don’t subsequently take out further credit of any sort once you have paid off everything you owe, this loan would be an excellent idea to help you get back on your feet. You do have to be fairly disciplined with yourself and turn down the offer of any further credit, otherwise you will be back in the same situation you were in before. The main disadvantage of this secured loan is that, if you default on your payments, you risk losing your home if the bank or loan company applies for a foreclosure order.SummaryDiscipline is the key to getting rid of all your debts. You need to avoid re-using any of the accounts that you have just paid off, otherwise you will be exactly back where you started – with the addition of further debts in the shape of the secured or unsecured loan you took out to clear this plethora of bills. Do everything in your power to avoid getting back into the unmanageable situation you were in before: leave your credit cards in the drawer at home and maintain as much of a frugal lifestyle as you can until all your bills are completely clear. If, in the future, you take out credit to fund your lifestyle, ensure you pay your bills on time, with no late payments and no defaults. As long as you only take out the credit you can afford to pay back you can face the future without stress or worry.