| 8 ways to consolidate debt | | |
| 5. Family
and friends. Financial advisers,
Pahl included, are universal in their advice that personal loans are a great way
to destroy a relationship. Still, he says, it's an option. "If you've got
a rich relative who offers to help you through a tight spot, maybe you should
just be gracious about it. Just get it all in writing and make sure you pay them
back."
6. Your credit union.
Credit unions generally have lower interest rates and fees on loans. If you're
not a member, check with your employer, family members or organizations of which
you're a member to see if you're eligible to join one.
7. A nonprofit consumer
credit counseling agency. Morris says this actually should be your
first stop. Experts in helping consumers get out of debt, they work
with creditors regularly to get late fees waived and interest rates
reduced. "They've heard it all. Nothing you will tell them
will shock them," Morris says. "What they often will do
is, rather than consolidating debt, you pay them a fixed amount
and they pay it out to your creditors. It's a kind of discipline
that can be helpful. It's enforcing a change in spending habits.
For the person who is serious about getting out of debt, that's
a solution."
8. Renegotiate
the terms with your primary lender. "A mortgage lender would
rather renegotiate than repossess your home," Morris says.
"They can say no, but you can go to them and say, 'I know I'm
behind. Can we stretch out the payments?' It's an upfront relationship.
They do lose money if you default. Most lenders will renegotiate."
Pat
Curry is a freelance writer based in Georgia. | 
