Debt Consolidation: When and Why to Consider a Debt Consolidation Loan

Juggling multiple debts is an overwhelming experience. Things can get complicated between dealing with past due balances, facing constant calls from collectors, trying to remember due dates and prioritize what you pay off when. Fortunately, there are ways to simplify this complex juggling act. Options for getting out of debt can range from bankruptcy to debt settlement, credit counseling and loans. One option often overlooked is a debt consolidation loan. A debt consolidation loan pays off your old unsecured debts and replaces your creditor payments with a loan payment. If you’re curious about a debt consolidation loan, here’s why it might be beneficial to you.

You have one payment instead of many

Consolidating your debts means you’re no longer trying to make payments to multiple creditors at once. You don’t have to worry about which creditors you can afford to pay and which you must skip each month. Your consolidation loan becomes your monthly payment. Making fewer payments will help you focus on making permanent changes to help your credit.

Your collections calls stop

A debt consolidation loan pays off your creditors. This means you finally get relief from all those collections calls. Stopping the barrage of calls will give you peace of mind and allow you to focus on taking the necessary steps to restore your financial health.

You pay off your debts

If you’re dealing with many different debts, debt consolidation may be a light at the end of the tunnel. However, you’ll still have to take care of your loan payments, but your loan will eliminate past due debts. Satisfying old debts and making all loan payments on time is a great step toward improving your credit profile.

You start fresh

A debt consolidation loan gets your old debts off your plate. Having these paid off means you can move on and start over with new, healthier money habits. Making all your loan payments on time and in full will reflect positively on your credit report. This is also a good time to start a new budget, so you can avoid future credit card debt problems and focus on saving money.

If getting rid of old debts and starting fresh sounds like the right path for you, we can help! Our DebtAway Loan will negotiate settlements on your past due accounts, then consolidate the reduced debts into a monthly payment that suits your unique financial situation. If this sounds like the right option for you, start with a free debt consultation here.