When you have more debt than you can easily repay, you do have a lot of options, which is good news. And debt relief can come in many forms.
Here’s how one type of debt relief—debt consolidation—can write a new page in your life.
Reduce Monthly Payments and Interest Rates
Debt consolidation rolls all your debt into one amount. When you do that, that amount will have a lower interest rate than what you have been paying.
That, in turn, will reduce your monthly payment to one you can easily afford. Sometimes, you may even be able to reduce some of your debts.
Say Goodbye to Your Creditors with Real Debt Relief
With debt consolidation, the company that handles your consolidation loan will communicate with the creditors for you.
They’ll negotiate on your behalf so you don’t have to talk with anyone.
Reduce the Total Amount of Your Debt
One of the best benefits of consolidating your debts is that you will reduce the total amount of your debt faster.
In fact, the company may even be able to negotiate to reduce—or even clear—some debts. In some cases, you may pay less interest in total.
Consolidate All Your Payments into One Consolidation Loan
One of the biggest challenges of having a lot of debts is remembering to pay each of them every month. It’s easy to forget one or two.
Also, just paying your debts takes a huge chunk of your time–time you could better spend making money rather than paying it out.
With debt consolidation, you only have to make one payment each month.
Instead of juggling lots of debts, worrying about whether you’ve paid them all, you must pay only one easy payment.
Easy to manage, easier to pay: debt consolidation provides convenience as well as relief.
Develop Better Habits with Debt Consolidation
How many times have you promised yourself that if you ever got out of the debt sinkhole, you’d develop better habits?
With debt consolidation, your lender will require you to make one regular, on-time payment each month.
You’ll know exactly how much you will need to pay so you can lay aside that amount every month. That alone is a step in the right direction.
Along the way, you’ll develop even more thrifty spending habits that can speed up your debt relief.
Debt consolidation gives you an opportunity to get debt under control and keep it there.
Avoid Further Financial Stress
With debt consolidation, you have a way to move forward and active steps you can take, giving you confidence that you’re heading in the right direction.
You’ll have no need to consider bankruptcy, leaving you free from stress and giving you a fresh start.
Explore Your Alternatives
As you weigh alternatives to solving your debt challenges, you may want to consider a consolidation loan as a possible solution.
Before you decide, though, examine all the possibilities to see which solution is right for you.
Learn How to Apply
If you have decided to consolidate, you’ll need to learn what steps you must take to apply for debt consolidation.
Gather all the information you have on each account: the creditor’s name and contact information, how much you owe, and the interest rate.
List your account number, as well as your monthly payment. List break costs or exit fees, if the loan requires them.
Have all that information at your fingertips so you can share it with the consolidation loan company.
Know Your Budget
Before you contact a debt relief company, though, do a thorough run-through of your budget to see—realistically—how much you can pay each month towards the debt.
You’ll need to know that figure before you settle on a monthly payment with the debt consolidation company.
And make sure you don’t overestimate how you can afford to pay. Create an estimate that’s a little on the low side to allow for unexpected expenses.
Find the Right Debt Relief Company
Finally, look for a debt relief company that is trustworthy, has excellent reviews, and has your best interests at heart.
To find one, look for a company that is a registered Debt Agreement Administrator with the Australian Financial Security Authority (AFSA).
If you would like to learn more about how debt relief can help you, the friendly team at Debt Negotiators can provide you with a confidential, impartial financial consultation to get you started.
To get in touch, call us on 1300 351 008 or contact us online.