Debt consolidation is one of the strategies you can try to gradually reduce and completely eliminate your existing debt. Most consumers are confused regarding what debt consolidation is and what is does. The term itself, “debt consolidation”, can be quite perplexing.
The simplest definition of debt consolidation is combining multiple small debts into one large debt. The advantage here is that instead of paying several interest rates for numerous loans, you get to repay all your debts at once with a single interest rate. It works for some, but not for all. Whether debt consolidation is appropriate for you will depend on your current financial situation.
Before you decide to consolidate or not consolidate your debt, you should first have at least a fundamental understanding of what it is. Here are five excellent books that will help you understand what debt consolidation is:
The Total Money Makeover: A Proven Plan for Financial Fitness (Classic Edition) by Dave Ramsey
The original “Total Money Makeover” book Dave Ramsey wrote became an instant bestseller thanks to its solid advice for getting out of debt. The popular book has seen numerous editions since. This is the latest and the most comprehensive version of Ramsey’s advice for eliminating debt. The content has been revised to include the money situation many faced following the 2008 financial crisis. You will learn everything you need to know about debt, financial planning, and debt elimination tactics like consolidation. However, this book covers only the basics.
Zero Debt: The Ultimate Guide to Financial Freedom (2nd Edition) by Lynnette Khalfani-Cox
The author once had $100, 000 in credit card debt. She managed to completely pay it off in just three years! Khalfani-Cox may not be an expert financial analyst, but she is an expert in balancing the home accounts during tough financial times. Read this book to learn about pragmatic debt elimination tips such as reducing interest rates and negotiating with creditors. She offers excellent advice on debt consolidation as well.
The Complete Idiot’s Guide to Getting Out of Debt by Ken Clark
The title says it all. This book is authored by a certified financial planner. So if you are looking for professional financial advice, without wanting to pay hefty charges, this book is for you. It details helpful strategies for getting out of debts incurred by student loans, mortgages, and payday loans.
Zombie Economics: A Guide to Personal Finance by Lisa Desjardins
Financial advice can be hard to follow, even if you have a degree in the field. The financial world is rife with useless jargon used to conceal what’s actually happening. If you are mentally allergic to financial literature, or are not an avid reader in general, this book will provide an entertaining guide to getting out of debt. The author compares debt to the zombie apocalypse. Then she explains how to “kill” the zombies with “weapons” like debt consolidation.
The Complete Debt Relief Manual by John Oswald
This is a no-nonsense financial guide to debt relief filled with real-life examples and comprehensive details. It’s a step above the other books on this list. It’s ideal if you have a basic understanding of what debt consolidation is, and want to read and learn more about it.
Reading listicles on the internet about debt consolidation will not necessarily help you understand the method. Therefore, read one or two of the above mentioned books and polish up your knowledge.
One way to consolidate your debt is to apply for a credit card for bad credit. These cards are relatively easy to obtain and might come with introductory low interest rate, which will help you save money while paying off your other credit card debts.