Financial Planning for Generation X & Y Women
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Expert Q&A Archive

Is it better to consolidate your bills?
There are a lot of people who have lots of bills, and they call upon the large loan companies to consolidate the bills to pay it. Do you think that it's a better idea to call upon loan companies to consolidate all your bills and give the money to pay it or do you think that you should pay the bills just individually, in a normal way?
Gail V. Marquet:
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Often times using debt consolidation companies can have a negative effect on your credit score. It's much better to contact your creditors and work out a payment plan that better fits with your income. Pay off the smallest bill first, then take that money and apply it to the next smallest. Keep going on this way which has a snowball effect until all your bills are paid off. You'll have a great sense of accomplishment along the way.
Delores Lenzy - Jones, CPA, CIA:
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My recommendation is to consolidate debt. You will have an overall lower payment and ultimately, will allow you to pay off the debt faster. Ultimately, you want to ensure that you eliminate debt.