Raising a family can be expensive. Parents are always looking for ways to save money, stick to their budget, and make ends meet. Sometimes, not everything goes according to plan, and they have to rely on various forms of credit to meet emergency expenses or bridge the gap for everyday expenses. Other times, it just gets too hard to keep track of it all, and they let their spending get out of hand.
It happens! Parents are only human, and sometimes they wind up with bills they just can’t pay. With the easy accessibility of credit, it’s tempting to borrow money. When it keeps happening month after month, you can wind up digging yourself deep into a trap, and action needs to be taken.
Fortunately, no problem is too big to handle when it comes to the money you owe. There are solutions that can help you deal with it. One of the tools you can use to get a handle on your budget is debt consolidation, which can be done either through a loan or a Debt Consolidation Program offered by certified Credit Counsellors at a non-profit credit-counselling agency.
What Happens in Debt Consolidation?
It’s easy to start owing money. In addition to things like student loans and car loans, you might have multiple credit card balances, overdue utility bills, etc. Every month, you have to make payments. Those repayments can strain your budget and along with it, your relationships, mental health, and capacity for stress.
With debt consolidation, all of those payments are wrapped into one simple monthly payment, and the idea is to make it lower than what you’re paying now by getting relief on interest charges from your creditors.
In a Debt Consolidation Program, you can have your interest rates significantly reduced or even eliminated entirely. It can make the difference between meeting your budget targets or making the problem worse.
How Does Debt Consolidation Work?
Debt Consolidation Programs are available with the help of a certified Credit Counsellor from a not-for-profit credit counselling agency. They offer relief by negotiating with each of your unsecured creditors to stop or reduce interest, stop collection calls, and allow you to make a single monthly payment that gets distributed appropriately to all of your creditors.
It’s a simple program that offers interest relief and makes sure you never miss payment again. The Credit Counsellor also helps you build a personal monthly budget, track your spending, and help you set and achieve financial goals.
When you’ve fallen behind on payments, being proactive about negotiations is the best way to get back on track and avoid further actions taken against you.
How to Get a Debt Consolidation Loan?
Rather than negotiating with your creditors, you can take out a new loan at a lower interest rate and use the funds to pay everything off. This can work if you have good enough credit to qualify for a better interest rate, but you have to ensure that you really are getting a better deal on all of your loans.
Consolidation can help you control your monthly repayments and take back your budget. Talk to a certified Credit Counsellor from a nonprofit credit counselling agency about your options.