Finding help in troubled financial times is not as easy as it used to be, and it can be even more difficult for people who have gotten in over their heads in credit card debt. Debt consolidation can still be an effective way for people with over-extended finances to get back on track, but you need to be sure that it is right for you and your particular situation.
You hardly realize what is happening with credit card debt, until it is too late and you find that you can?t even keep up with the charges and fees, much less any of the principle. All it takes is one unexpected expense (?Honey, I?m pregnant?) and even the most careful of budgeters can wind up in world of trouble. Finding your way out of a financial nightmare is one of the hardest things to do, especially in the economy we deal with these days.
Can a debt consolidation loan get you out of the jam you are in? It is a very distinct possibility. Recent credit law changes make it difficult to get a small loan to tide you over while you catch up financially, so your options have been reduced. However, debt consolidation is still on the table and would gather your debt under one payment, reducing the size of your payment and any charges you may be incurring on your current debt. This could free up some of your cash flow enough to be able to get out of the situation that got you in trouble in the first place.
With unsecured credit the thing that gets most people into trouble is the over abundance of fees, charges and interest that can put direct repayment just out of reach no matter how hard you try. Debt consolidation can reduce or eliminate these charges and most credit companies are willing to work with the debt consolidation company in order to get their money.
Some of the advantages of using debt consolidation to get you through are the reduction of interest charges, elimination of the fees and penalties, a single low monthly payment, and a longer repayment period on the loan. Of course, there is a drawback. With the longer repayment cycle, the interest paid over the life of the loan may be more, but you can take care of that problem by simply paying the loan down as quickly as possible. With the lower monthly payment, you should be able to free up enough cash to get back on your feet and start paying down the principle on the loan and get it paid off early.
Is debt consolidation right for you? You will need to take a hard look at your situation and weigh all the advantages and disadvantages before you make your decision. If you have a number of unsecured loans with high interest, you may be able to get enough of a break on the interest and payments to make it work for your situation. Just be sure to have a plan to infuse the money you save on interest and payments into an early repayment plan and you are sure to turn things around financially. - 31377
You hardly realize what is happening with credit card debt, until it is too late and you find that you can?t even keep up with the charges and fees, much less any of the principle. All it takes is one unexpected expense (?Honey, I?m pregnant?) and even the most careful of budgeters can wind up in world of trouble. Finding your way out of a financial nightmare is one of the hardest things to do, especially in the economy we deal with these days.
Can a debt consolidation loan get you out of the jam you are in? It is a very distinct possibility. Recent credit law changes make it difficult to get a small loan to tide you over while you catch up financially, so your options have been reduced. However, debt consolidation is still on the table and would gather your debt under one payment, reducing the size of your payment and any charges you may be incurring on your current debt. This could free up some of your cash flow enough to be able to get out of the situation that got you in trouble in the first place.
With unsecured credit the thing that gets most people into trouble is the over abundance of fees, charges and interest that can put direct repayment just out of reach no matter how hard you try. Debt consolidation can reduce or eliminate these charges and most credit companies are willing to work with the debt consolidation company in order to get their money.
Some of the advantages of using debt consolidation to get you through are the reduction of interest charges, elimination of the fees and penalties, a single low monthly payment, and a longer repayment period on the loan. Of course, there is a drawback. With the longer repayment cycle, the interest paid over the life of the loan may be more, but you can take care of that problem by simply paying the loan down as quickly as possible. With the lower monthly payment, you should be able to free up enough cash to get back on your feet and start paying down the principle on the loan and get it paid off early.
Is debt consolidation right for you? You will need to take a hard look at your situation and weigh all the advantages and disadvantages before you make your decision. If you have a number of unsecured loans with high interest, you may be able to get enough of a break on the interest and payments to make it work for your situation. Just be sure to have a plan to infuse the money you save on interest and payments into an early repayment plan and you are sure to turn things around financially. - 31377
About the Author:
Susan Reynolds is a content coordinator for a leading South African Debt Consolidation provider. For more information visit: http://www.debtconsolidation123.co.za/
