Debt consolidation is a loan that pays off your existing debts, leaving you with just the one consolidated loan to repay to your lender. It can be the best option for those with increasing debt who are not ready to file for bankruptcy or don't meet bankruptcy's qualifications. Below, three reasons to consider debt consolidation are explained in more detail.

1. Streamline Your Debt

An abundance of debt and a pile of monthly payment obligations can easily become confusing and overwhelming. Debt consolidation will pay off all eligible balances and give you a single bill to repay every month. Not only does this streamline your debt and make it more manageable, but you know what your monthly payment obligation will be, which allows you to easily and efficiently plan your budget and stick to it.

2. Lower Your Interest Rates

You likely pay interest on all your multiple outstanding balances. And when you figure in finance charges and fees in addition to the interest, you are paying a substantial amount of money every month that's not being put toward paying off your debt. With debt consolidation, the only interest you have to worry about paying is the one attached to your consolidation loan.

3. Decrease Your Monthly Payments

For those with debt spiraling out of control, even making the minimum monthly payments on a variety of accounts can add up quickly. When you opt for debt consolidation, however, there's a chance your monthly commitment will be less than what you're paying on your multiple accounts now. This can give you the opportunity to start saving, budgeting, and planning your way out of debt.

The bankruptcy lawyers at Arnold Law Offices serve clients throughout the Pell City, Alabama region. Call (205) 338- 6565, visit their website, or connect with them on Facebook or Google+ to schedule a consultation. By understanding your options, you can make the best decisions for your financial well-being, whether that means debt consolidation, Chapter 7 bankruptcy, or Chapter 13 bankruptcy.