What is a Debt Consolidation Program
A debt consolidation program is a way to put several debts under a single loan. In short, it entails taking out a loan to pay off several loans and thereby have a single payment to worry about.
Why a Debt Management Plan Is a Good Idea
Debt consolidation is about taking your scattered unsecured debt (debt without collateral) and combining it under a single payment. Things like credit cards, payday loans, utility bills, medical bills, and others. Although it doesn’t pay off your debt directly, it offers several advantages.
- All you’ll have to worry about is a single monthly payment
- You’ll get the help of a credit counsellor who negotiates with debtors on your behalf
- You avoid the continued accrual of interest on your debts
- Stop collection agency calls
- Negotiate a lower monthly payment
- Straightforward monthly transfers with your payment of choice
How To Set Up A Successful Debt Management Plan
More than just a way to simplify your payments, a debt consolidation program is a way to normalize your financial situation. With a qualified credit counsellor, you’ll have a helping hand from someone who wants to see you succeed and can teach you simple money management skills to reach your goals. Some things you’ll learn include:
- How to build a personal monthly budget and use it to get out of debt
- Financial goal setting
- How to get the most out of your money
- How to track and control your spending
Benefits of a Debt Consolidation Program
- A simplified monthly payment process that takes the stress away from your payments with the help of a qualified professional.
- Lower monthly payments and a consolidated debt that can be paid off in a reasonable timeframe.
- Reduce your interest payments significantly which could lead to thousands of dollars in savings over time.
- Prevent having to use drastic measures, such as bankruptcy, which could strongly impact your future financial capabilities.
Don’t remain a slave to your debt forever. You can take the first step now towards a brighter financial future!