If you are going through debt consolidation

If you are going through debt consolidation, you need to go through interest rate arbitration before you consolidate your debt. In this arbitration you could receive a reduction in your interest rate. This translates into lower monthly payments for your total debt. Gradually your credit score will also increase with on time payments as well.

Make sure to learn about the fees that you will have to pay. The fees need to be provided in writing and explained fully. Also, ask how your payment will be divided among your creditors. The company handling your debt consolidation will prepare a payment schedule, and you should get a copy so you can see how much each creditor will be paid monthly.

If you find a lender who offers you a great rate, time frame and the amount of money you need, take that information, in writing, to your current financial institution. They may be able to match or even better that offer just to keep you as a loyal customer.