If you are feeling overwhelmed with debt, you are not alone. There are many ways to chip away at debt, especially if you have a large amount. It may be time to consider consolidation or settlement.
Combine Several Lines of Debt
Many people have more than one line of debt. You may have medical debt, a mortgage, and several credit cards. When you consolidate your debt, you may combine it into a new account or a new loan. You can get a personal loan through a service like Symple Lending that allows you to pay off your other debt. If someone only has credit card debt, they may get a new card with a better interest rate and roll the balance from smaller cards over onto this one new card.
If you opt for debt settlement with a service like Freedom Debt Relief, you can still combine several lines of credit into one payment. The other benefit is you can pay less as the company will negotiate a lower payment with your creditors. You can pay that reduced debt on one lump sum or over several monthly payments. Be aware the faster option to repay the settled debt, such as a lump sum or shorter monthly payments, will be cheaper than having extended monthly payments.
Make One Payment
One of the reasons why many people may fall behind on debt is simple forgetfulness. After all, many Americans have busy lives at work, school, running errands, and other general life stressors. As a result, someone who means to pay their bills on time can quickly fall behind by missing a payment or two because they forgot the due date. Those late payments can add late fees and can balloon up. When you consolidate your debt, you will no longer have to worry about juggling different payments throughout the month. You’ll make one monthly payment, which is usually automated.
Avoid Late Fees
Say goodbye to those harmful late fees. These fees can quickly cause your account to go over the limit. Then, you will have an over-the-limit fee! Luckily, the cost of credit card late fees has lowered to an average of $8 from a previous average of $32, according to the CFPB. If you have late fees on several accounts, they can quickly become overwhelming. Consolidate debt and say goodbye to this concern.
Get Better Interest Rates
Interest rates play a factor in any debt you have, whether it’s a mortgage, personal loan, or credit card. When you consolidate your debt, you’ll likely get a much better interest rate than what you have on your existing debt. As a result, you’ll be able to pay down the actual balance and not just have it go on interest fees.
Debt is a problem for many Americans. Luckily, help is available when you consider professional debt consolidation or settlement relief services. The sooner you start, the sooner you can live a debt-free life.
