Consolidating Your Debt Is the Best Solution to Your Debt Problem

images (10)

Are your debts getting out of control? Are you unable to manage your multiple debts? If your debt is giving you sleepless nights, it is important to seek help quickly. Remember, ignoring your debts won’t make them go away. It will only make things worse.

If you are in debt, here is a list of questions you should ask yourself:

Question 1

Are you finding it difficult to meet your monthly repayments?

Answer

Consider rolling all your multiple debts into one monthly repayment. It will:

>> Reduce the amount you pay each month; and

>> Make your debts easier to manage.

Question 2

Do you have multiple debts (i.e. mortgage loan, credit cards and store cards)? Are you having trouble managing these multiple debts?

Answer

Multiple debts means:

>> Paying multiple sets of interest; and

>> Finding it hard to stay on top of your multiple debts.

So, consider consolidating your debt because it will:

>> Enable you to keep track of your debts; and

>> Enable you to pay down your multiple debts.

Question 3

Do you have negative listings and defaults listed in your credit file?

Answer

If you do have a bad credit history, you will find that your loan options may be limited.

Question 4

Do your multiple debts have high interest rates?

Answer

Consolidating your debt should enable you to get a loan with a lower interest rate.

Question 5

Do you have equity in your home?

Answer

If you do have equity in your home, you may be able to use it to pay down all your multiple debts.

Question 6

When is it the best time to consolidate your multiple debts?

Answer

You can consolidate your multiple debts:

>> Whenever you consider you are ready; and

>> When you are unable to manage your multiple debts anymore.

Before you Borrow

If you are thinking of borrowing money, here is a list of steps you should consider and which may help you:

Step 1

Use a budget planner to work out what you are spending now.

Step 2

Use a borrowing power calculator to calculate:

>> How much you can afford to borrow; and

>> If you can afford the repayments.

Step 3

If you decide to borrow, shop around for the best deal and take time to compare:

>> Interest rates;

>> Product features on offer; and

>> Fees and charges.

Step 4

Know who you are dealing with. This means anyone engaging in credit activities (e.g. anyone providing credit or providing credit assistance to you) must give you:

Leave a Reply

Your email address will not be published. Required fields are marked *