If you have a lot of bad debt, it is crucial you seek ways to get rid of your debt. While you may have a steady income from your day job, the high interest and penalty fees charged by the lenders may be much higher than what you can afford to pay every month. One of the best options for getting rid of your debt is filing for bankruptcy. The second and best option is to consolidate your debts.

Debt consolidation is the process of having your debts settled using a large, but low-interest loan with friendlier terms and conditions. There are many benefits of consolidating your debts, so be sure to carry out the necessary research before deciding to make a commitment. Below are some debt consolidation tips you should always keep in mind:

Obviously, you have multiple types of debts. Some debts have high interest rates while others have high late payment penalties. By taking time to analyze your debts, you can easily identify the best debts to pay with the debt consolidation loan. The first is credit card debt. The second type of debt is paydays loans and cash advances. These debts come with high rollover fees and high interest rates, so they should be the first to settle. After adding up all your bad debts, you can take out a loan and pay them off.