Debt haunts most of us at one point or another in our lives. We all manage it differently and some of us are better than others at keeping on top of payments. If you have found yourself bogged down by unexpected medical bills landing on top of credit cards debts, a debt consolidation loan might be your path out of the financial muck and mire. There are a few things to consider before consolidating, but if managed intelligently, it just might be your ticket out of a sea of debt:
- If you’re paying back debt at a high interest rate, let’s say, 25%, you may find you’re accumulating more debt quicker than you’re paying off your existing. If that’s the case, a loan might help you out. You might be in a position to get a lower interest rate meaning you’re paying back more of your principle, faster, saving you money in the long run.
- Lots of debt, lots of minimums: If you find you’re paying multiple loan companies just the minimum payment requirement per month, it can be a struggle to keep on top of everything. Consolidating your debt could mean a reduction in your monthly minimum meaning you rid yourself of the potential for missing payments and getting penalised. Lowering your monthly payment through a debt consolidation loan will help you keep on top of, and ultimately beat your debt.
- Keeping on top of multiple bills can be a job in itself, let alone figuring out how to pay for them all. Many people miss payments simply because a bill or two got lost in the chaos of home. By consolidating your debts, you’re dealing with just one notice, once a month – much easier to keep a handle on! This could make all the difference as missing a payment can mean hefty fees and less of your hard-earned cash going to the actual debt payment.
As always and as with anything, make sure you do your research! There are some great options for debt consolidation out there, but there are more than a few companies looking to take advantage of good folks in strife.