The Truth About Debt Consolidation
When it comes to debt, we know there are a ton of emotions that pop up. We may feel confused, scared, and sometimes depressed. Having a mountain of debt ahead of you can feel daunting and overwhelming, but it doesn’t have to feel that way. The truth about debt consolidation can actually give you, as a consumer, a lot of freedom. Debt consolidation is a great option for so many people, and we’ve seen it help thousands of people get control of their debt.
One of the main perks of debt consolidation is that it consolidates your attention. It’s right in the name! Debt consolidation involves taking multiple debts and renegotiating them into one loan. Yes, you still have the same amount of initial debt, but the peace of mind that comes from having just ONE loan to focus on can be a huge asset to people.
Think about how much mail you get each week. Imagine if you had 3-6 smaller loans outstanding. That’s a ton of paper you’d get each month reminding you of loans. Your odds of getting disorganized with that many different accounts is much higher than if you are only focused on one loan in front of you. If you know yourself, and know that you can sometimes get unorganized, debt consolidation can truly save you a lot of stress, by the simple fact that it is only ONE thing you have to focus on.
The trust about debt consolidation is that you still are responsible to pay off the original debt. Sometimes you can lower your interest rates on that debt, but you still have to pay off the full amount of debt owed.
The original amount you charged to credit cards, took out in loans, or were charged for things like medical bills will still be there staring you in the face. Debt consolidation does not necessarily take away any of the initial debt you face. This is an important thing to understand because ultimately, you will need to work on paying off the new loan that gets set up for you. Ultimately, you are still responsible for any debt, which can be a different option than things like bankruptcy and other debt settlement plans.
With debt consolidation, you still have to pay interest on the outstanding loan. You may be able to get a lower overall interest rate than what you had on other smaller loans, but you will still be paying interest over time. This is common practice with loans and debt management and it’s important to understand what you are actually paying out in the end. For many, though, this is still a great option so that you can get the large sum of debt managed.
The trust about debt consolidation is that your debt management will be part of your near future. You will now have a loan based on a certain amount of months, and sometimes years for repayment. It is going to take discipline and a focus on the long game. It is normal for debt management to take time to get out of. Can we tell you a secret though? The truth is that by making those consistent payments and chipping away at debt through a debt consolidation plan, you CAN meet your goals and get your debt under control. It probably won’t be overnight, but it can happen. We’ve seen so many of our clients learn healthy financial habits as a result of participating in a debt consolidation plan. We know it takes work, but we also know that you can grow in ways you never considered possible before.
If you want to learn more about our debt consolidation, debt resettlement, or other debt management services, our team would love to talk with you. We’ll listen to what your needs are and present to you what your options are. We’re here to answer your questions and help you get a place where debt is no longer ruling your life.