Do you really need debt consolidation? This is an important question because it is a last resort that will pull you out of your financial mess. A debt consolidation plan can be a good solution if you have an outstanding amount of debt. If you fall in any of the following three categories then and only then should you look for a debt consolidation plan.
- You have many monthly payments and you are juggling between them. Since, it is becoming difficult to pay the monthly amount for all the different debts at the same time; you would want to simplify all your pending debts into just one monthly repayment. This is when debt consolidation will help you because it can help you pay off all your debts with a single monthly payment.
- If you have been struggling to meet the required minimum monthly payments on store cards, credit cards, and other personal loans and if you want to reduce the total amount of your monthly payments then a debt consolidation program will be extremely helpful. It will also help you to pay off most of the other debts and outstanding amounts and thereby you will have only a small amount of debt remaining, which will be much easier to pay off.
- If you are trying to find a way to reduce the current interest rate applicable on your monthly bill amount especially on unsecured loans and other forms of lending like credit cards, and overdrafts, then this is the right choice. Once you take on debt consolidation, you will be able to make one lump sum payment towards most of your balances and this will bring down the applicable payment on your debts. At this point, you can talk to your lender to reduce the interest rate on your accounts.
- Stop those collection calls. While you still may receive a call from a creditor every so often, you will no longer receive the intimidating calls requesting payment on past due debts. You can be at ease not worrying you will be on the other line when your phone rings.
Debt consolidation has helped many American’s out of debt. Through credit counseling services such as Debt Consolidation Connection, you get more than just a way out, you financial education to help prevent you from going into debt in the future. Our website offers many resources to helping you achieve your goals.