Yes, it is. You can do self debt consolidation by carefully planning out how much you will need to pay off all of your debt, then applying for a bank loan to cover those debts.
You main goal is to get a bank loan that has a lower interest rate than the interest rate of your credit cards or student loans. If you fail to do this you may end up owing more in the long run. Once you have the bank loan you can start to contact your creditors.
Call Creditors for Self Debt Consolidation
You may wan to start self debt consolidation by calling your creditors to negotiate. Creditors may not be willing to work with you, but you may be able to at least get some fees reduced, or perhaps some late charges removed. They may be willing to remove some charges and fees if they know you are going to be able to pay them in full. This might save you a bit.
Remember that if you get a settlement $2000 — let’s say your debt is at 5K and the company accepts 3K — it will count as income for your next income tax return.
Once you have called all of your creditors, then send out all the payments. Be sure that you have called all of your creditors to find out the exact amount you should send them, or you will end up with another bill next month for any interest which was added on after the last bill was sent out.
It can be confusing, but take your bills one at a time and knock them out. Keep careful records of what you paid and when, and keep the cancelled checks attached to your copy of the credit card statement, to prove you should have a zero balance.
Self Debt Consolidation and Bills Management
Once you’ve paid the creditors off, don’t just charge up those credit cards again. You’re still in the same amount of debt, you’ve just moved it around a bit, and hopefully lowered the amount you will eventually end up paying.
Be sure to make your payments to this loan on time and in full if you do not want to lose your home. This is especially true if you got a home equity line of credit or a second mortgage on your home.
If your debt problem comes from income that does not meet your bills, try to cut back on expenses or increase your income than charging again. This is to prevent you from ending up in the same place, only this time with credit cards and a second mortgage or line of credit. If you plan your self debt consolidation well you can be sure that you can get out of debt.