Debt Consolidation

THIS MAY SEEM a little crazy, but, sometimes the best way to get out of a sea of debt is to borrow more. Debt consolidation means that you take out one huge new loan to pay back your old ones. It's good to do that when you can get a lower interest rate than you had before. This way, your monthly payments will be lower.

One way to get a better deal is to hint to your creditors that you are thinking about defaulting on your obligations, or in other words, not paying back what you borrowed. If you do it convincingly enough, your creditors will sell your loan to special debt consolidators, who buy these non-paying loans at a discount. Once that happens, contact your new creditor and pitch for discounts or lower monthly payments - since he got your loans cheap, he probably won't mind.

Loan refinancing