FINANCE Free Yourself from Crippling Debt the Smart Way

Crippling Debt

There is little doubt that financial debt is a massive problem. Credit card companies are only too happy to hand out credit cards and lower the barriers to entry. By widening the use of credit cards, these companies encourage their use in consumer spending and benefit from the monthly repayments that people need to make in order to control the interest. Banks themselves are also to blame for spiralling debt levels in our communities, as they tack on needless fees and charges. The recent scandal over financial advice given out by certain banks is certainly evidence that our debt is their gain. In fact, our debt is a key component of the business models run by both banks and credit card companies.

Even if you do find yourself in debt to numerous creditors, it is not too late to find a way to manage your repayments. Many people look to claiming bankruptcy as a method of solving their financial woes, but this path has implications that can lead to problems down the line, including not being able to get a future loan should you need one.

Debt Consolidation as a Method of Solving Your Financial Problems

Rather than seeking bankruptcy as a way to solve your debt problems, it is wise to consider debt consolidation. If you have debts to numerous creditors, debt consolidation allows you to lump all your debts into one payment, with the following possible advantages:

  • Lower repayments: If you are eligible for debt consolidation, you can take all your current debts to creditors and simply combine them into one lump sum. By doing this, you lower your repayments and the levels of interest. No longer are you having to service multiple debts.
  • Management: By reducing your debts to a single monthly payment with lower rates of interest, you are better able to manage your finances. This is far easier than trying desperately to service multiple debts and means that you are far less likely to miss a repayment. By not missing repayments, you pay down debt more quickly and do not amplify the problem by saddling yourself with extra interest repayments.
  • Predictability: By only having to pay down one consolidated debt that represents all your creditors, you have a regular and predictable amount to pay each and every month. This means that you can better manage your finances and your life, knowing that all your payments are organised and easy to service at one time. Click here to discover more about the advantage of debt consolidation.

Manage Your Finances and Your Debt the Easy Way

There are a number of experienced companies that offer debt consolidation services, and it is worth talking to them to find out if you are eligible. Debt consolidation is a much better way of managing your money and paying down debt. It allows you flexibility, affords you monthly predictability and means that you never miss a repayment again. By taking control of your finances, you take back control of your life.