What is the scariest thing you have ever seen? While some might say it was the Amityville Horror movie or the Exorcist, for many it is the thick bundle of bills that come in every month. Every time you manage to pay them off one by one, you realize that the month is already about to end, you are broke, and it is time for a new bunch of bills to come in. Bills don’t just come in by mail anymore. They are everywhere. In the inbox of mobile phones, emails and push notifications, all deliver some payment ultimatum.
Paying bills was never fun, and it was never meant to be fun. However, right now, matters are much worse with a generation struggling to pay off student loans, trying to hold down multiple jobs and striving to pay the home mortgages. In fact, a huge percentage of millennial workers do not own their own homes. They either bunk with their parents if they are lucky enough to live and work in the same city or they live in cheap rented apartments that barely have the basic amenities. Many millennials don’t even own personal cars. Even then they are drowning under a pile of unpaid bills and staying awake all night trying to figure out ways to make it until the next month.
How can debt counseling make your financial situation better?
The situation is quite grim, but not quite hopeless. Even with multiple small loans, payday loans, student loans and maxed out credit cards, you can harbor the hope of a better and financially secure future. All you have to do is resolve – to spend smartly, to use your credit card(s) smartly and to manage your debts better. With the millennial lifestyle, we can understand why you might find it very difficult to dedicate time towards the management of debt. It takes time to lay down all monthly expenses and then make a budget for the upcoming month. It always seems better to engage an expert to assist you in the process, and you are right!
The best debt consolidation programs have the following perks –
- They offer free consultations (at least the first consultation is free)
- They charge less to no fees
- The help you find one or more ways of paying your creditors off, with or without a consolidation loan within 3 to 5 years.
- They have no impact on your credit report.
You can visit nationaldebtrelief.com to know about several other benefits of opting for debt consolidation programs and debt counseling by NFCC (National Foundation for Credit Counseling) accredited non-profit organizations.
Do you need a debt consolidation program or a debt consolidation loan?
Appointing an NFCC authorized expert to manage your expenses, savings and finances do not have to be very costly. Seek out a reliable and cost-effective non-profit organization in your neighborhood, which can help you figure out where all your money is going. Enroll in debt counseling processes. Debt counselors will help you spend smarter and save more in the upcoming months. Even with multiple, heterogeneous loans and revolving lines of credit, you can easily live a less frugal life with the money you earn every month. A majority of the cases we have witnessed were suffering from bad debt management. This involves paying off the wrong debt and paying the minimum for high-cost debts or botched attempts at debt snowballing that disastrously backfired.
How can a debt consolidation loan rescue your finances?
The most effective way to manage several loans in one go is by adopting a debt consolidation plan. Debt consolidation programs will need you to forward them the lump sum amount that covers all your outstanding debts, and they will pay the dues forward to the right creditors at the right time. A debt consolidation loan is a new loan you need to apply for to receive the lump sum that will allow you to pay your dues to the creditors.
For successfully consolidating your debts and paying them off on time, you need to do the following –
- Pull the copies of all your monthly payable bills/receipts and a copy of your credit report from a reliable source.
- Review your equity lines and liquid assets, to check if you can pay off your creditors without starting a new loan payment.
- Check with the popular debt consolidation loan companies for best possible interest rates and monthly payments.
Is borrowing the consolidation loan from a friend or family a good idea?
A debt consolidation loan does not always have to come from a bank, credit union or a consolidation loan company. You can borrow from your friends and your family to pay off your dues. Borrowing money from parents or relatives and even friends is a much easier task. You can convince them of your efficiency and reliability more readily as compared to unknown business parties. However, this comes with a different kind of a risk. If you ever fail to pay the dues on time, you risk running your relationship with your loved ones. In case you are thinking about borrowing money fromwithin your family or your friend, you need to sit them down and explain your situation. Hoodwinking them into “investing” in a pyramid scheme never works out. Chalk out a monthly budget, promise a monthly payment date and live up to your decision.
Debt consolidation loan does not work like magic. It is a time-tested method to smoothen out the financial kinks that come along the way to financial freedom from multiple debts. Since it reduces the number of monthly payments to just one and reduces the amount payable as well, there is no reason to rejoice already. The only time you can consider yourself free from all debts is when you pay off the final installment of the debt consolidation loan and you have no other creditor knocking on your door.