Many people claim that money can’t buy happiness; however, it does allow you to purchase a number of things that make you happy. Unfortunately, if you wind up spending too much money, all the debt will steal your happiness and replace it with seemingly endless amounts of stress. The good news is, even if you feel as though you are drowning in debt, there are options. An option that is growing in popularity is debt consolidation. Some of the signs it is time for you to consider this debt relief option can be found here.
You Feel As Though You Are Drowning in Debt
Up to 80 percent of people in the United States are in some level of consumer debt. Of those individuals, approximately a third of them have become delinquent on their payments. If you have started skipping some of your payments, or even putting balances of one card on another just to try and put off the inevitable, then it may be time to consider debt consolidation. This will help you get control of the payments. If you are being harassed by creditors, it is also a viable option to consider.
You Are Only Able To Make Minimum Payments
When you make only the minimum payments on a credit card, it means that it will take you decades to pay off event he lowest debt you may have. A consolidation loan will run for five to 10 years. This is true even if you are only paying the minimum amount.
Remember, it will be virtually impossible to handle this on your own. While you can negotiate with various companies to try and reduce interest rates and forgiveness on part of your debt, this isn’t always a sure thing. As a result, a debt consolidation loan may be able to help you get your head out of your debt and make choices that will benefit you financially.
Your Credit Needs To Be Cleaned Up
In some cases, debt consolidation isn’t for everyone. If you are going to be going through a major life event, such as attending college, moving or even having a child, then it can be a viable option because it lets you handle your debt situation must faster than trying to pay it down on your own. Not only are these serious personal events, but financial ones too. When you pay off your debts, it will ensure you have extra money and help your credit rating.
You Are Ready To Put Money Toward Paying Off Debt
If you aren’t willing to make sacrifices, then debt consolidation won’t work. If you are having to pay more than $950 on your credit cards, the idea of a loan where you only have to pay $640 is extremely tempting. However, if you only plan on paying the minimum on the loan that you have received, you are probably going to pay much more in interest than if you just kept making the payments on the existing debts you have. A better option is to keep paying that $950 into the loan, all with the goal to pay it off earlier to have debt free living.
Keep in mind, debt consolidation is not going to be a magic trick that helps to solve all of your financial problems quickly. You have to learn how to create and stick with a budget and discipline your spending. The good news is, there are a number of situations where debt consolidation can be invaluable and help you handle your debt issues.
If you feel as though you are drowning in debt, then it may be time to consider a debt consolidation loan. This is the best way to help you manage your finances and it may even help you improve your existing credit rating.
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