Debt consolidation is a way out of debt for many families. As credit card interest rates go up and the penalties for having a poor credit score become greater, families need a way that they can rebuild their credit while getting out of debt more quickly.
Consolidation lowers your interest rate and helps you make monthly payments on your loans, so that your credit score can start going up again. It indicates to credit rating agencies that you are taking the problem of your debt seriously. Here are five signs that debt consolidation services might be for you:
- You have credit card debt over multiple cards. When you have multiple cards, it can be hard to remember when to pay them all off, and you might be more likely to accumulate more debt than you can easily pay down. Consolidation services automatically make payments to multiple accounts on your behalf, so all you have to remember is to pay the single consolidated amount every month.
- You’ve been turned down for a home loan or auto loan. A low credit score can make you ineligible for major financing opportunities. Debt consolidation can help you improve your credit score over time, so you can start qualifying for loans again.
- Your interest rates are 20 percent or more. High interest rates make it very difficult to pay off your loans and credit cards. With debt consolidation, you can lower your interest rates, so you can afford to pay extra towards your principal. The more you pay each month towards the principal, the faster you will pay off your debts.
- You owe $10,000 or more in outstanding debt. When your debts get into the five figures, it can feel overwhelming. But by consolidating your debts, you’ll end up paying off your debts sooner rather than later. As long as you have a plan, you don’t have to worry about the amount of debt you have.
- You want to get your life back from debt. Something people don’t always talk about is the psychological and emotional toll that debt can take on a person. From inconvenient collection calls to nights thinking about how you’re ever going to pay it all off, it can be very stressful. With debt consolidation, you can put an end to that much sooner, and take your life back once again.
Debt consolidation services from Credit Guard are for everybody who feels they could use a hand up out of debt. If any of the things on this list describes you, you may want to contact a provider today.