Debt consolidation is a great way to get out of debt and pay less money in the long run. With a debt consolidation loan, you may have to take out a second mortgage or personal loan to pay off all your debts. With debt consolidation, you may be able to get rid of those debts while still paying a lower monthly payment. But how do you pay all your debt at once?
There are three steps to how to pay off all your debt at once. First, contact your creditors and make them aware that you would like to consolidate your debts. Be honest with them. Tell them that your income is insufficient to handle all your bills. If they agree to consolidate your accounts, be sure to know where they will send you payments so you can afford to make them on time.
The second step to how to pay off all your debt at once is to sign up for an account that consolidates your bills. Some companies offer the service for free, others charge a small fee to send payments on time. Some companies even have a free account setup and send you your first payment automatically each month.
Next, use a bill consolidation software program to open accounts for yourself and your spouse to pay your debts. This software programs your bills into one account. You do not have to write separate checks to each account. As long as the balances on your accounts are the same, you can pay the same monthly payment to the software program. The program computes your payments on your behalf, so you only write a single check each month instead of multiple checks.
After you set up these accounts to pay all your debt at once, you are ready to close them. You may choose to sell your accounts or you may choose to keep them all. Whichever option you choose, close them both. Close the accounts you have with creditors you still owe money to and close the accounts you have with creditors who are no longer in debt with you. You should do this when you are in control of your finances.
The third step to how to pay off all your debt at once is to pay your monthly payments on time each month. Again, if you chose to keep your accounts and consolidate them, you must be sure to write out your checks on time each month. Just make sure to include any interest, fees, and penalties you incurred with your account. Make your installment payments on time every month.
How to pay all your debt at once is relatively easy. It is just like starting over. Don’t worry about what to do. Just get started! Don’t wait for those accounts to go into default or collect too much money because you won’t need it.
If you have debts you want to pay off, learn how to pay off all your debt at once. Start today! And if you are struggling financially, consider a debt consolidation program to get you out of debt.