Many people are struggling to make ends meet, which
further pushes them into credit card debt that they can’t get out of, which
often leaves them wondering if debt consolidation is the best option. As your
trusted guide to financing and getting out of debt, we have your resources to
help you make the financial decision best suited for you. Whether it’s looking
for trusted debt consolidation agencies like Symple Lending to find an experienced debt consolidation agent at
top-rated places or providing tips to paying off your debt, we’re here to help!
Should I Consolidate my Debt?
So, is debt consolidation the right choice? Like with
many significant financial decisions, it’s important to consider the pros and cons.
Benefits of Consolidation
Lower payments:
Consolidating your debt allows you to pay off what you owe faster since you’re
merging your debt into one lower monthly payment. Depending on your credit
score, you can also try and take advantage of lower interest rates. Your rate
will also vary based on term length and loan amount.
Streamline your finances: With one
monthly payment, it’s easier to keep track of your debt since it’s the same
amount each month, as opposed to multiple bills with different due dates and
monthly payments. Having a fixed repayment plan often helps relieve stress for
many people.
Boost your credit score: After first,
consolidating your debt will lower your score slightly. But as you continue
making payments on time each month, you will begin slowly seeing an increase.
Remember, your payment history will account for at least 35% of your credit
score. This is why on-time payments, whether you consolidate your debt or not,
are vital to a strong credit report. Also, keep your accounts open since it’ll
help keep your credit history in excellent standing; 15% of your credit history
is the length of your credit.
Disadvantages of Debt Consolidation
Are there cons to consolidating your debt? This isn’t
for everyone, so you need to discuss things with a financial expert. However,
the main takeaway is knowing that going this route will not solve your
financial issues. While it helps get you out of debt and gives you a fresh
start, learning how to create a budget you can realistically stick to is the
only way to keep yourself out of debt.
Surprises can happen, and that’s why many financial
experts recommend building an emergency fund to cover
emergencies like an illness or accident or surprises like minor or major car or
home repairs.
Get More Financial Tips and Guides
Getting out of debt doesn’t have
to be stressful or unattainable. Get in touch with a debt consolidation agency to
discuss your situation and options and work on ways to
learn how to manage your money better.
