Do You Require a Debt Consolidation Loan to Repay Your Credit Cards?
At some stage in life, we all like to indulge in some debt, and it doesn’t really matter what type of debt it is, at the time we agree to a new credit card or account, we may get a little excited. Some may even get too excited.
Fast forward from all the excitement with either a few months or years later, and we’re sure you are now over it and would just like to pay it all off, all because it’s an incredible headache to give up a portion of your salary up each month, to be able to afford your credit card debt.
Those who indulge a little too much might require a little extra help in doing so.
When you have a credit card, or even worse, multiple credit cards and other sources of debt, you could find yourself feeling incredibly overwhelmed and seeking a solution.
People often seek help through debt consolidation, because it allows them to repay all their debt with just a single payment, rather than having to pay multiple accounts, with added interest.
Even though interest seems like a small and insignificant variable in the amount you must pay on your bills at first, it can add up to be a lot more than you have spent, which also makes it more difficult to repay your debt altogether.
Are debt consolidation loans worth it?
Debt consolidation loans may not make a lot of sense to anyone who’s trying to repay their debt.
They are very endearing because you get to pay much less monthly, to repay all your debts, yet it does take longer to pay off your debt.
Debt consolidation is not a bad thing. It can help you get out of debt effectively. There are, however, a few factors you need to remain aware of, such as checking what your monthly payments for debt consolidation might be, to ensure that it is worth it, over just paying off your bills by yourself.
As soon as your credit card debt is paid off, you also must keep in mind whether it’s in your best interest to close your credit cards, as there is nothing stopping you from taking charge of that clean credit slate all over again.
Debt consolidation companies will never advise you to close your credit cards after you’ve used their services and repaid your debt. It is a decision you’ll have to make on your own, one that might just be in your best interest.