Making My Debts More Manageable
Like many people at the moment, I am in debt - debt I could (and probably should) have avoided!
Come to think of it, it’s not actually that bad, it’s just hanging over me and I would like to make it more manageable so I can focus on clearing it.
As it stands, I can afford all my monthly repayments fine, and I’m sometimes left with money spare. However, it’s the fact that there are too many payments to make each month, and that’s what is making my debt a nuisance. I would love to have just one payment to make each month… my debt would be so much easier to manage.
That’s where ‘debt consolidation‘ could help. According to the research I have done (and information my friends have provided me with), debt consolidation involves taking out a new loan and using it to repay all my existing unsecured debts in one go - leaving me with just one payment to make each month instead of the several I have to make now. What’s more, I may actually be able to save money in interest by using a debt consolidation loan - if the interest rate on the loan is considerably lower than the interest rates on my current debts.
So… I seem to have found an appropriate solution to my debts - but there are a few things that anyone thinking about debt consolidation would need to take into consideration. For example, I’ve read that debt consolidation would not be suitable for me if:
1. I could not consolidate all of my unsecured debts.
2. I earned a commission-based pay (i.e. had an erratic/fluctuating income) - because I would not be able to commit to making regular payments.
3. I could not afford to repay the debt consolidation loan in full.
But… because none of the above apply to me at this moment in time, I think a debt consolidation loan would probably be right for my circumstances. I’m going to seek professional debt advice just to make sure, and if a debt adviser believes it is right for me, I think I will go ahead and take one out.
