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

  1. A simplified monthly payment process that takes the stress away from your payments with the help of a qualified professional.
  2. Lower monthly payments and a consolidated debt that can be paid off in a reasonable timeframe.
  3. Reduce your interest payments significantly which could lead to thousands of dollars in savings over time.
  4. 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!