Are you going to ignore the problem or face it bravely?
Debt problems are things some of us ignore as long as possible, right? I know you may feel stressed and even embarrassed thinking about it. If you’re anything like me, even boring tasks become attractive when compared to facing payments and debt management.
But that was in the past. Now I know that with debt consolidation Australia’s public can handle debt better.
So why make yourself anxious if one decision can solve many aspects of debt?
The Challenge of Debt
Many of us face the challenges of rising debt. It could be because of the economy, unforeseen circumstances or unwise decisions.
But for now, let’s not get caught up in why it happened. The good news is, the solution is the same for everyone.
Are you tired of dealing with creditors and stressing about handling each month’s many payments? Why haven’t you tried getting a debt consolidation loan?
With debt consolidation, bad credit becomes more manageable.
What is Debt Consolidation?
All your debt can be covered by one loan during debt consolidation, meaning a borrowed amount is used to pay off all your creditors. This can include:
– Bank credit cards
– Store cards
Now you only have to repay one amount. It’s already easier when you have fewer people to deal with every month, right? Often this stress relief is all you need to feel rejuvenated.
Both your budget and your psychological state can get help with debt consolidation.
Debt Consolidation Options
Let’s not be naïve. Yes, it’s a beneficial situation in most debt cases, but you must find the perfect solution. You don’t want to make your situation worse.
Any one of these options can be your solution:
– Are you making payments on various credit cards? Do the math and see if using one to pay off all the others will result in lower monthly expenses. Picking the card with the lowest interest rate may save you money. Plus, you only have one payment to do which saves you time.
– Get a personal loan that covers all your debt. Now you only have to pay the bank one monthly payment.
– A debt consolidation loan is tailor-made for these situations. This differs from a regular personal loan in terms of rates. In many cases you’ll get a lower interest rate than the ones your creditors offer you now.
You don’t have to feel stuck in debt. There are options available.
When to Consider Debt Consolidation
Are you reading this because you’re struggling to handle your debt? Then consolidation makes sense. Just remember the lenders will look at your financial situation. They must know you’re capable of repaying the loan. Provide them with enough detail to prove you can.
But this solution is not only for when you’re desperate. Isn’t it better to prevent problems?
If you currently have a few creditors you’re probably paying more fees and interest than is necessary. This is an excellent time to consolidate your debt:
– You minimize your current expenses
– You apply for the loan while you still have a good credit score
– The money saved can increase your cash flow or be used to pay off the loan faster
Can you see you’re not powerless? You have options. Create your own solution, or turn to banks and loan providers.
Is debt consolidation a good idea? Is going through your budget, expenses and debt worth the effort? Perhaps these benefits motivate you and give you perspective of what debt consolidation solutions enable you to do.
You’ll Stress Less
It’s one of the most debilitating feelings: The guilt of owing money that you can’t pay. Each call regarding an outstanding payment increases your stress. Usually it prevents you from thinking clearly or finding practical solutions.
With fewer people to feel indebted to, you’ll be more creative. This can lead to an increase in income through more or better work delivery. The long term effects of debt consolidation can be an increase in quality of life.
Save Time and Money
Why keep on paying exorbitant repayment amounts or interest rates? Debt consolidation loans often come with reasonable rates, even if you have to make payments over a longer period.
If you get the right loan your new payment may equate to less than your combined payments currently add up to. This means a more manageable cash flow and funds to pay off the loan.
You’ll also spend less time managing your finances, making calls and talking to creditors. You only have one institution that needs your attention.
With more time on your hands you can increase your income and pay off your debt faster.
A Few Warnings
Let’s be realistic. Debt won’t disappear overnight and debt consolidation isn’t a shortcut. It simply makes your road easier.
And to ensure a positive eventual outcome, you must be cautious:
– You will feel better knowing your debt is manageable. But don’t let the sudden relief lead to more spending.
– Don’t accept a debt consolidation loan from just anyone. Compare interest rates and payment plans to get the best deal from a reputable institution.
– Don’t accept that a loan is the best option. Do your homework. You may end up paying higher interest rates or additional fees to the loan institution. Which scenario is most beneficial?
– Be prepared for the change. It’s helpful if you spend less monthly on paying off debt. But the repayment could take years.
These realities require mental and financial preparation from you. Are you ready for this?
So what next?
It’s easy to get started. Get an idea of what you can save. That’s what an online debt consolidation loans calculator is for (google will show you plenty of good ones). Do the math and when you’re ready, you can face the challenge & ask the experts to help. The problem you’ve been ignoring does have a solution.