According to the latest quarterly Report of the Centre for Microeconomic Data of the Federal Reserve Bank of New York, the total household debt in America reached a new peak of $13.15 trillion in the fourth quarter of 2017. This report also reveals a staggering rise in the delinquency rates in recent times. This means that more and more American households are defaulting on their payments, or are having trouble repaying. And that brings us to one important question. If you’re in debt and have been struggling with your payments, what can you do? Firstly, stop feeling helpless. Evaluate your options, and see if you can get a loan for debt consolidation.
What is Debt Consolidation?
The term may sound intimidating, but in fact, is very simple. Debt consolidation refers to combining all your loans into one single loan to enable easy and faster repayment.
Why Should You Get a Debt Consolidation Loan?
Because it’s far better than a drastic measure of bankruptcy! A debt consolidation loan is a positive step towards being debt-free. It facilitates the process of repayment and reduces anxiety. These aside, there are more reasons why you should get a loan for debt consolidation:
- It helps you switch to a much lower interest rate, helping you save a significant amount of money
- Since debt consolidation helps you combine your payments into one, it gives you better control of your debt and enables you to keep track of your payments.
- You don’t have to worry about multiple due dates or payment amounts because repayment is made simpler by debt consolidation.
- If you get a loan for debt consolidation, you have a better chance of making proper payments on time. This brings about a noticeable improvement in your credit score.
How Can You Get a Debt Consolidation Loan?
You may approach financial institutions/banks that offer debt consolidation loans, or just opt to use the services of an agency that can further simplify it for you. These agencies provide guidance through the process and help you get a debt consolidation loan while familiarizing you with how it works and what you need to do to be debt-free.
Being in debt is never a comfortable feeling, especially when you’re having a hard time repaying. Debts have a way of haunting you and giving you sleepless nights. They slowly sneak up on you, take over your mind and instill fear and anxiety. And those repeated calls from your creditors don’t make it any better. So if you want to steer clear of all that trouble, managing your debts and keeping them in control are very important…and debt consolidation is one effective method of getting your finances back on track!