How will debt consolidation help me with my debt?
You may be in need of some debt help if you are having a difficult time making all of your payments, if you find you don’t have enough money at the end of the day for food or necessities because of your debts, or if you are only making minimum payments and not paying down any of your principle. If you are trying to pay off multiple consumer debts, a consolidation loan may be an option that could work for you. Today I will explain how consolidating your debts into one loan can be beneficial in paying off your debt.
Firstly a consolidation loan is a loan taken out at a financial institution that pays off all of your outstanding consumer debts such as credit cards, pay day loans and lines of credit. There are a lot of positive reasons to consolidate your debts, but you must weigh up your options carefully.
A consolidation loan allows you to pay down your debt faster. If you have debts that have high interest rates then consolidating all of those payments into one lower interest loan payment will save you a lot of interest. Therefore, more of your money will go towards paying down the principle balance and your loan will be paid off sooner.
If you have a lot of different payments to make in a month and you find yourself missing payments or just being stressed about paying them on time, then a consolidation loan will help simplify your debt repayment plan. Consolidating your debt at one financial institution will also save you time and is far more convenient than making several credit card payments or driving to pay day loan offices to make payments.
However, if your credit rating is low you may not be able to qualify for a consolidation loan or if you still believe the consolidation loan payment will be a struggle you should look at all the options available so you can make an informed decision. In this case give us a call at 4 Pillars Lethbridge and set up a free consultation with our Debt Relief Specialist, Darrell, who will help you look into other options. Call at 403-332-7361
