When you look at your monthly bills, does it seem like you pay dozens of small bills, and their balance never goes down? Are you constantly tracking payment due dates and how much extra you can afford to help reduce your principal? At Morgan & Partners Inc., our team can help you with personal debt consolidation to assist in alleviating the burden of so many small bills. Before taking this step, we have several considerations to ensure this is in fact the right path for you.
- Taking Out a Loan – When you decide you would like to consolidate your debt, it often involves taking out one large loan to cover all the smaller debts. Be careful with this option because, although you will only have one payment, your loan interest rate may be very high, adding to the balance you owe, rather than helping you pay down debts. Additionally, you have already taken out many small loans, and you must consider if another loan is the right choice for you.
- A Trick of the Mind – Once you’ve consolidated your debts into one single payment, you may feel that a burden has been lifted. Be cautious, however, because you may feel that it is okay to take on additional debts now that your load has been lightened. Remember that personal loan consolidation should be an avenue to financial success, not a reason to add more debt.
Personal debt consolidation offers many advantages by preventing you from having so many small payments and never being able to alleviate your financial burden. If you need help negotiating with creditors or choosing the best plan of action, we are here to help. In addition to personal debt consolidation, at Morgan & Partners Inc. we offer financial planning to help you assess your road blocks and determine the best course of action to achieving financial freedom. If you have questions about personal debt consolidation, please call us today.