Have You Ever Thought About Debt Consolidation?

by The WoF 14 days ago in personal finance

A Debt Consolidation Advise

Have You Ever Thought About Debt Consolidation?

We all know that it can be difficult to get out debts, ant it is very important to think twice about the financial decision you’re about to make, specially when you’re facing a bad financial situation.

The purpose of this article is to give you an idea of debt consolidation and to help you out in understanding what are the options and possible solutions for organizing your debts.

Frist of all, we have to understand that 'debt consolidation' refers to the fact that you can bundle all of your debts to be able to make a single payment for all them under the same "loan". The goal here is to significantly reduce the amount of cash that you pay to your creditors each month for the money you owe, until eventually, paying the debt in full.

Freedom is another thing to take in consideration, because when you combine your debts in one place you get more control over your finances and, also, you enjoy the benefit of simplifying the monthly budget in your household.

There are some companies dedicated to offer this kind of consolidation services, but you have to know that not all debt consolation companies are going to save your life, and more accurately, probably only a few will do.

Make sure to do a little research online and in your local area before making any deal with any of these companies.

The Better Business Bureau is a good spot to look up for this kind of companies. And even better for you is to read other customer’s reviews in order to decide whether this services are good for you or not.

Go to the credit company and ask them if they would be able to accept a lump-sum payment of a smaller amount than the actual debt.

Since I do not want to speculate on this I recommend you contact directly to the credit company to know exactly what’s the percentage of the lump-sum against the actual debt payment.

In my experience it can be as little as 60-70% of the debt payment.

Another thing that I’d like to highlight is the Privacy Policy of the debt consolation company.

For security purposes you need to know how your data is going to be handled.

Even though you are able to read this Privacy Policy online, you should print out a copy for you just in case, due to the volatility of online information.

Take in consideration the amount of interest that you might save when consolidating all of your debts in one single place, it should be a plan that allows you to pay off all af the transferred debt while you're in a period of low-interest.

One thing that you might want to have in consideration is that your attendance with these recurrent payments that you're going to make should be perfect. If you miss some deadlines for the payments, the interest that you'll have to pay after will go to the sky! So, a really good advice is to be cautious on that.

When it comes to your current creditors, they should know when you begin to work with a credit consolidation company, because in most cases, they are willing to adjust their deadlines and interest rates to meet the procedures of the credit consolidation company you're going to work with.

It is also good to tell them because when they know that you are proactively reaching to them and showing willingness to pay, they show back to you a warm willingness to help with anything that might be on their hands.

From now on, you'll know that you can avoid an incredible amount of stress and pressure that comes along with having multiple debts and dealing with multiple payments, by consolidating all of your debts in the same spot.

personal finance
The WoF
The WoF
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