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Five Benefits Of Debt Consolidation

For many people in modern society, debt is just a way of life.  Easy to get lines of credit and credit cards paired with best intentions for repayment that didn’t quite work out have created scores and scores of debt disasters. That’s why debt solution products are so popular and why so many people are seeking them out.  Debt consolidation is one method that a lot of people use to try and pull it all together and get their finances back on track. Debt consolidation refers to combining all of your unsecured debts into one loan, with one monthly payment.  For many people in serious financial trouble, this technique provides several benefits.

Organization

Having multiple debts hanging over you is enough to make your head spin.  You have to keep track of when each payment is due and make sure you pay it every month.  You are also working with several different interest rates, which is another source of confusion.  And it doesn’t make a difference if the debts are large or small, it is the volume that makes it crazy. Debt consolidation makes the whole process a lot more organized, because you can literally forget about all the individual debts and concentrate on just the one.  Just one monthly payment with just one interest rate.

Lower Interest

Getting a debt consolidation loan doesn’t necessarily mean you’ll get the lowest interest rate in the world, but you’ll surely save money over the long haul.  When people get into debt trouble, some of it is usually due to credit cards with high interest rates.  If left alone, you’d end up paying ridiculous amounts toward interest by the time you had the cards paid off.  When everything is consolidated, you’ll just have one interest rate and you’ll save by not having to pay off all the debts individually.

No Creditor Calls

Multiple debts also mean multiple calls from creditors when you have difficulty making payments.  As anyone who has been in debt trouble knows, creditors can be quite pushy and aggressive when trying to get their money from you. With debt consolidation, all of the creditor calls will stop and you can focus on paying the one payment every month.  

Stress Reduction

Creditor calls and just the feeling of that debt hanging over you are a major source of stress.  Debt-related stress can manifest itself in many different conditions including depression, high blood pressure, sleep disorders, weight gain or weight loss.  So often with serious debt problems, the situation takes on a hopeless feel and you feel like it’s never going to stop. Debt consolidation can help remove a lot of the stress because you’ll no longer be receiving the phone calls and there will be an end in sight.  

Debt-Free Faster

Aside from organizing your life and relieving stress, debt consolidation is also designed to get you out of debt faster.  When all the debts are consolidated, you’ll be put on a payment plan, and that plan will have an end date, where you will have it all paid off. When you have multiple debts, the interest payments alone can eat up a lot of your payments and you’re often looking at years before you are debt-free.

At Doyle Salewski Inc. Bankruptcy Trustees in Ottawa, Ontario, those experiencing financial stress or cash flow problems can get help through consumer proposals, debt consolidation, or credit counselling.


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