Debt Spread Out? Five Reasons You Should Consolidate Your Debt
Life is so busy with family, friends, household chores and social events. Who has time to remember when you need to pay each of your many bills? And when you miss one payment, there is usually a hefty fee added on. The banks think if you miss one payment, then you will never pay them back. If your debts are spread out, here are five reasons why you should consolidate your debt.
1. Manageable Monthly Payment
The best thing about debt consolidation is the possibility of reducing multiple bills into one easy monthly payment. Forget all the dates – just remember one. Save on stress and checks. Circumstances change and your present financial condition will be the new barometer going forward. Consolidation allows you to have a little more financial wiggle-room month-to-month.
2. One Interest Rate
Credit cards, automobiles and houses all have different interest rates. With debt consolidation, you can get a standardized interest rate that might save you money in the long run. Be sure to know the interest rate on every bill you owe, because the way you save money by consolidating is by replacing high interest rates with a lower one. If your original interest rate was lower than the consolidated one, then you are defeating one of the purposes of consolidating. Be sure to research each of your major bills before consolidating them all together.
3. Interest Rates Might Increase
The Zero Interest Rate Policy (ZIRP) of the Federal Reserve was meant to be a short-term fix to make credit cheap to help the economy improve. It cannot last forever. Money is not free. Thus, the only way that interest rates can go is “UP.” A debt consolidation today might save you money in the long-term before rates go up. Consider locking in those prime rates now.
4. Review Your Credit Score
From time-to-time, it is wise to conduct an in-depth review of your credit report to determine if everything is accurate. During debt consolidation, you can get advice, consider paying off balances and learn how to correct credit report errors. You can review your credit score on your own, and the time and energy you spend has the potential to really help you out if your credit record does not reflect your actual history.
5. Latest Financing Options
Financial institutions continue to develop better products and services to attract the business of those with bad credit and high debt. There are also government programs that you might qualify for. Bankruptcy services in Brampton are available at Paddon & Yorke Inc. to help you consolidate debt. You don’t lose anything by simply seeing what is possible.
Simplify your life, add convenience and make sure you don’t miss a payment with debt consolidation. You can save money writing all those checks out and sleep better at night. Debt consolidation shows that you are serious about getting your financial house in order. Your bills are not going to magically disappear, so be proactive in managing your financial budget with debt consolidation.
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Category: Debt
