Once a family starts having serious financial problems, they are not usually able to solve them alone. This happens for many reasons. People who are under a lot of financial stress tend to be more distracted and to have more difficulty making good decisions about their money. Some people reach the point where they stop opening their bills entirely. If you’re struggling to keep up with your bills, pursuing Debt consolidation may help you to simplify your situation and to regain control of your money.
Part of the benefit of this tactic comes from the fact that it takes many bills and piles them up into a single bill that you have to pay each month. Families who are struggling to keep up with payments often have many different creditors they have to pay. It becomes very easy to miss a payment date and to set off a cascade of late fees and penalty interest rates that make it even harder to pay the rest of the bills. When everything is compiled into a single payment, it’s easier to manage. That’s true even if it doesn’t change the actual total amount that you must pay monthly.
Often, however, Debt consolidation does allow families to pay less on a monthly basis. The consolidation is generally arranged by setting up a new loan, where the money disbursed is used to pay off the existing debts. Generally, such a new loan is arranged to have a longer repayment period than the debt that it’s replacing. This makes it a lot easier for families to stay current on making payments, and sometimes even makes it possible to do things like begin building an emergency fund. That, in turn, moves you toward being in a situation where one unexpected event, like having your car break down, is a financial disaster.
Chris Carouthers & Associates, LLC can help you to assess your financial situation and what kind of options are available to you. They can explain the implications of different possibilities, such as consolidation loans or bankruptcy, so that you can make an informed choice about what path is best for your family.
