When you get behind with your financial obligations you need to make the right choice when trying to consolidate your debts The first place to call is the company who you are paying your bills to. The second one is to contact a debt settlement company which will work on your behalf to lower your debts. The third place to try is by using a peer to peer lending site.
Working with your debtors is the first action anybody should take. This way you keep open lines of communication with them and let them know about your situation. Doing this will improve your chances of having some of your debts lowered or forgiven with a lower interest rate. If this happens then you should feel lucky. Do not be mad if they do not try to work with you. You signed a contract and knew what you were getting yourself into. Your creditors are in business to make money not lose money.
If that does not work you need to start looking at other options. Now you should look at a debt consolidation company. This company will look at all of the debts you have outstanding and give you a estimate on which ones it looks like they could work to get lowered. They start negotiating your debts with your debtors to lower them or remove them. Many lawyers run these types of companies and are experts in negotiating. When you hire them you will have to pay them a fee and sometimes it can either be a flat one or a percentage of the amount of debt they have negotiated for you. If they succeed in lowering your debts your credit report will show it as so. Be prepared to see a drop in your credit scores but be happy knowing that you are probably going to be paying a lot less back. Cura Debt is a popular company that many people work with.
If dinging up your credit report is out of the question then a peer to peer lending site could work. These sites are a community of people who are looking to invest their money with. You make a listing of yourself describing what you need the money for. These people bid at different interest rates and amounts until the amount you asked for is reached. When the amount is reached the interest rate at which you first listed yourself up for starts going down as people bid against one another. The more bidding means the lower the rate you will pay. After the bidding is done you will be given the money and have to pay it back over a set time period which is usually three years. You make monthly payments back and the people earn the interest rate you are paying them. Every body wins here because you get a low rate loan, no dings on your credit report, and normal people earn money for helping you. Many people enjoy working with the Lending Club for these types of scenarios.
All three of these methods will help you one way or another. Each has their risks and rewards and some are better than others. When it is all said and done just remember to never get yourself in this situation again.