Is Debt Consolidation the Right Choice For You ? If so, try Dutchess Partners
You’ve wracked up some debt – credit cards, student loans, medical bills,a car you can’t afford – and now you can’t see to keep up. What are your choices what do you do?
Debt consolidation can help roll your high-interest debts, such as your credit card bills, medical bills, etc, into one single lower interest payment each month. It can help reduce your total debt and reorganize it so you can pay it off faster.
Whether consolidating your debt is a good idea ALL depends on your personal financial situation and the type of debt you have – and the consolidation you are considering. Consolidating debt with a loan could help reduce your monthly payments as I mentioned, but could mean paying more in total interest. You need to investigate and decide what is right for you.
If you have quite a bit of debt it may be best to get it to a point that its manageable. But is it the right choice for you?
For many people, consolidation is a light at the end of a tunnel – if you set it up and know that as long as you make payments on time, and it will be paid off in a few years, imagine the freedom that offers. That’s the hard part with credit cards – you are always accruing interest, and even other fees, making your pay off date seem further and further away. You can be successful with a debt consolidation if you debt doesn’t exceed 50% of your income, your credit is good enough to qualify for 0% credit card or no interest debt consolidation loans, your cash flow can cover your payments for these debts, and you have a plan to prevent getting into this debt problem again. (try this debt consolidation calculator to see where you come up!)
Consolidation isn’t a solve all problem – you have to address excessive spending, and it is not the solution if you are so overwhelmed that even lower payments won’t help get it paid off – when you can hardly tread water – it’s silly to make yourself think a consolidation will help. Or if you have a small debt load, where you could pay it off yourself in a year or 2, it doesn’t make sense to consolidate then either.
Check out services like Dutchess Partners – where you can pay one easy payment, with lower interest rates, and cut your payments down by up to 50%! They will help you understand your limits, and help you get to a place where you can start handling things on your own. They will also give you tips on how to cut down expenses and save on daily items – it is a great place to start.