With many people around the country doing it tough right now, this week we’ll look at a way you can take some pressure off your monthly finances through debt consolidation.
Here’s a quick experiment.
Go pick up three balls and try to juggle them. Most people, besides those who ran away to join a circus, will likely drop at least one of them within a few tosses.
Now put two of the balls aside and throw the remaining ball up and down (with one or both hands).
Much easier to manage, right?
Well, it’s not too dissimilar to the concept of debt consolidation.
If you have more than one loan – be that a credit card, car loan and/or a personal loan – you can help reduce the stress of juggling multiple debts, payment dates and interest rates by rolling them into one easy-to-manage loan.
There are other benefits, too
One common debt consolidation method is to take out a new personal loan and use the funds to pay off your other existing debts.
Now, if the interest rate on the new personal loan is lower than the rate on your existing debts (for example, a credit card with a 17.99% interest rate) this can help you pay less interest each month – not to mention avoid the nasty late payment fees that come with those kinds of cards.
And by rolling all your debts into one, you can get a clearer timeline of when you can be debt-free.
Debt consolidation can