One of the many options in debt management is debt consolidation. With debt consolidation, the numerous monthly payments that you owe to several companies will be reduced to one single payment through a longer-term or lower-interest loan (or a mixture of the two), commonly referred to as a debt consolidation loan.
If you are paying three different credit card companies and you are also paying for your car loan, consider the amount of the payment you make to each creditor per month. Also, keep in mind the costs of the monthly payments, any late charges or interests that may pile up. Next, complete our form to submit an enquiry to a debt consolidation loan provider. They will give you an estimate of the amount of money you'd actually save each month if you decided to take out a debt consolidation loan. If there would be significant savings if you were to take on a debt consolidation loan, then this is a viable financial option for you.
Once you find out that a debt consolidation loan will save you money when you compare it with the amount that you are currently paying toward your debts, then your debts will slowly but surely be lessened. You will be paying lower interest payments than you would on your credit card debt, and you will be given a longer period of time in which to repay the debt. In addition, you would not need to worry about meeting different due dates for several credit card statements since this will all be paid on time by the debt consolidation loan provider. However, do bear in mind that you are effectively replacing debt with another type of debt, so this really needs to make a significant difference to your monthly payments for debt consolidation to be a viable option for you. Speak to an experienced financial adviser before proceeding if you are unsure about whether this is the right option for you.