Staying Afloat: The Benefit of a Debt Consolidation Loan | Ways To ...

Browse >
Home / Debt Loan / Staying Afloat: The Benefit of a Debt Consolidation Loan

Article by Coley

Staying Afloat: The Benefit of a Debt Consolidation Loan ? Finance

Search by Author, Title or Content

Article ContentAuthor NameArticle Title

Home
Submit Articles
Author Guidelines
Publisher Guidelines
Content Feeds
RSS Feeds
FAQ
Contact Us

Your stress level can be directly proportional to the amount of debt that you have. Stress can significantly reduce your quality of life. This level of stress can only grow worse as the debts pile up, especially if you have outstanding loans from more than one source. If you?re starting to drown in your debt, it might be time to consider applying for a debt consolidation loan.

A debt consolidation effectively combines all of your preexisting, outstanding debts into one manageable loan. It?s the same debt, just bundled into one payment instead of many, making it significantly easier to handle one payment instead of the several you might currently be keeping track of.

This is welcome news to anyone who has debts from multiple sources (as previously mentioned above) because it removes the necessity of keeping up on due dates and payments. With more due dates comes the higher chance of one being missed in the process of taking care of another. And when more due dates stack up between paychecks, it becomes increasingly more difficult to make your money last.

The tricky things about a debt consolidation loan is just that: it?s still a loan. You?re not getting yourself out of debt, you?re just putting all your debts into one big pot. That being said, don?t get stuck thinking a debt consolidation loan is going to solve you problems with debt.

It?s a great way to help you regain your monetary balance. Juggling loans and payments generally leads to a poor credit score, especially as payments are missed and slip through the cracks. Your credit score represents how well you handle credit, and a poor credit score makes it difficult to finance big-ticket financial ventures down the road.

It?s still a better idea to try to manage your debts yourself if you can. You should only consider using a debt consolidation loan if you?ve exhausted the rest of your options. Instances of possible bankruptcy and foreclosure are a good time to consider debt consolidation. Outside of those two, you should do your best to find another route.

This is why. When your lender buys out your debt, they have to offer you the new consolidated loan at a higher interest rate in most cases. This is how they keep themselves in business. The interest rate, however, will depend on your credit rating just as it would in any other case.

If you choose to apply for a debt consolidation loan, treat it like the clean slate that it is. Don?t fall back into the same cycle of debt that got you into the hole you?re trying to climb out of.

About the Author

I?m a finance expert specializing in debt consolidations. Check out churchwoodfinance.co.uk for more information.

Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.

Coley

RSS Feed

Report Article

Publish Article

Print Article

Add to Favorites

Article Directory
About
FAQ
Contact Us
Advanced Search
Privacy Statement
Disclaimer

GoArticles.com ? 2012, All Rights Reserved.

I?m a finance expert specializing in debt consolidations. Check out churchwoodfinance.co.uk for more information.

Use and distribution of this article is subject to our Publisher Guidelines
whereby the original author?s information and copyright must be included.

Source: http://www.waystoreducedebt.net/staying-afloat-the-benefit-of-a-debt-consolidation-loan/

beltane ryan o neal dark knight rises trailer dark knight rises trailer vince young vince young evan longoria