Using Debt Consolidation
Debt is a subject that not very many people like to discuss. It is embarrassing and awkward to tell family or friends that you have debt. What would be even worse is having to tell your loved ones that you are claiming bankruptcy! It is much easier and better for you to get your debt sorted out now when it is a small problem, than waiting until it is out of control and having to take drastic measures such as filing for bankruptcy. If you are struggling with debt today and know that if you don’t take care of it soon that bankruptcy could be in your future, then keep reading.
What is Debt Consolidation?
Debt consolidation is when you group two or more of your existing consumer debts into one loan, making one new monthly payment. You can do this by going to your bank and taking out a loan and using it to pay off all of your existing smaller debts. Normally a bank will offer a lower interest rate on a consolidation loan than what you currently pay on credit cards or pay day loans. With paying a lower interest rate more of your monthly payment will go towards the principle of the loan rather than the interest. This can also mean that you could pay the full amount of what you owe sooner than you would have previously.
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