Like many Americans, you’re struggling with your finances and can’t see a path through the dark forest of debt. Have you considered debt consolidation? Firms will literally buy your debt, place it in a single package, and make your repayments far easier to handle. If you’re interested in this process, read through this article to leasrn more about the best times to try it out.
Do You Have Multiple Debt Types?
Are you making multiple payments to several different debtors of various types? For example, are you paying big car bills, expensive credit card costs, and mortgage payments that have spiraled out of control? Often, debt consolidation in this situation is more than worth it. It’ll take all these expense types and create a far easier-to-afford single monthly payment package.
Are You Suffering Under High Interest Rates?
When struggling with multiple high interest rates, debt consolidation with firms like Symple Lending is often essential. For instance, let’s say you have two credit cards with 20% interest rates and a loan with a 25% interest rate. Consolidating all that money into a plan with a 10% interest rate cuts into your payments and helps you pay off your principle way more quickly.
Is Your Credit Score Pretty Good?
Not everybody with high debt levels has poor credit scores. In fact, many people struggling under the weight of excessive expenses possess fantastic scores. If you do, consolidation is a great opportunity for you! Often, experts at Symple Lending and similar firms will provide great interest rates and favorable terms for peolpe with rates of 670 or higher: not bad at all.
Do You Have a Steady Income?
People with consistent paychecks typically do best with debt consolidation. They not only more easily make their payments but often get better repayment terms from financial firms. Freelancers, contract workers, or anyone who gets laid off seasonally (such as contractors or teachers) may not do as well with consolidation. That said, a little careful planning may help.
Can You Avoid New Debt?
Here’s the thing you need to know about this process: new debt is a no-no. In other words, you shouldn’t buy a new home, take out a loan, or fill up a credit card with no expenses. Consolidation is a carefully planned process, and new debt will likely make your repayment package impossible. Cut back on your expenses or literally cut up your credit cards to stay safe.
Take Control of Your Financial Burden
If debt consolidation seems like a “get out of jail free” card to you, it’s important to change your expectations a little. You’ll still pay off your debt and make monthly payments. It’s not a way to immediately wipe the slate clean but a powerful way to reduce your expenses, minimize unnecessary costs, and get you working towards a healthier financial state.
If you understand this process and are willing to commit to it, you’ll walk away in far better financial health and more in control of your future. That alone makes debt consolidation a great choice. However, it’s still worth sitting down with your family and financial planner to make this big decision. If you don’t have a financial planner, why, now’s the best time to get one.
