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Sometimes, you are left wondering how you got in such a financial mess. For me, I know the answer. Our stories may be different but our decision to find out more about debt consolidation is a position many people come to, that can help their families.
The first thing to know is what makes you a great fit for using debt consolidation, to get back on your feet and debt free? Our biggest issue at first was of course the fact that our due dates were spread out over the course of the month and it seemed we were living paycheck to paycheck. Being able to consolidate all those payments in to one payment simplified the hectic rat race of paying what seemed like a different bill every 3-4 days.
You might be a good candidate for a debt consolidation loan if:
- You can repay your consolidation loan without accruing additional debt.
- You have the right credit to obtain a loan at a better interest rate than your current debt.
- You are having a hard time keeping up with multiple different payment schedules.
However, as with all financial products, there are a few things you should pay attention to:
- Make sure you are aware of the fee the consolidation lender will charge
- Understand what support you have access to, for example: will the lender pay your creditors directly?
- If there is an advantage to having a co-signer on your loan.
See how debt consolidation can help your family get organized, get out of debt, and not utilize credit cards to help shuffle your debt around, instead using personal loans to lower your interest rate to get ahead.
I once used the Prosper debt consolidation platform to lower the interest rate on a card an ex had left me with. If I stayed with just paying the card that had no interest and no finance, but was about to be slammed with all those fees, I would have paid an additional $2,000 or more over the time it would take me to pay it off. With the debt consolidation loan, I was able to secure a lower interest rate and pay off in a time frame that still worked for me. It was about saving my credit score at this time.
You have options depending on how your credit score looks, how long you want to pay off your debt, and how much you need to acquire to be able to achieve this goal. Easily compare 15 debt consolidation loan companies that are ready to help you and your family in just a few clicks: See how debt consolidation can help your family
The first choice you need to make, is if you are ready to become debt free. Until you are ready to get tight with finances and to clean up the prior messes and decisions, only then can you move forward and seek help that will let debt consolidation guide you in the right direction.