Things always happen when you least expect them and when you can least afford them. This is often how many people get into financial trouble. They need a new roof for their house, or their car breaks down, or a medical emergency. All these things are unplanned. They can be a non-issue if you have savings to cover these emergencies, but if you don’t, the answer often lies in putting it on a credit card.
With interest rates, unless you can pay off the credit card immediately, you will end up paying way more than you anticipated.
Thankfully, there are companies today that have consumers in mind and offer a wide range of solutions to help get you out of debt and stay out of debt in the future.
Is Consolidating Debt the Best Option for You?
As you consider different options, you should know how debt consolidation works. This will help you determine if this is the best option for your financial needs.
According to NerdWallet, the process of getting a debt consolidation loan can be quick and easy:
- Check your credit score so you will know if you qualify for a debt consolidation loan.
- Create a list of all borrowers and how much you pay each month.
- Look at all the different types of loan options and the payback schedule and interest rates/fees for each.
- Apply for the best loan for your needs.
- Close the loan, pay back creditors, and then pay back the debt loan.
There are benefits to getting a debt consolidation loan. Many can get a lower rate on the loan than they did on their credit cards so they can pay the loan off faster. Also, you will be paying one loan payment, instead of several. This makes it easier to remember and you won’t be caught paying late fees.
Loan Consolidators:
Many companies offer personal loans for the purpose of debt consolidation. One of these is Symple Lending. There are many companies like Symple Lending that work with individuals to help them get their finances back on track. Sites like DebtConsolidationReviews list numerous different lenders in one place, so you can review and determine the best for your needs.
Be sure to find out about any fees you may incur at the close of the loan. Often there is a one-time origination fee. Also, check to see if there are fines for early repayment, and check the interest rate.
