Debt consolidation can make your lives easier – at least when it comes to bills payments. If you are struggling to keep up with all the bills that you have to pay, that is okay. There is a way to make things better and easier to accomplish. Despite your limited resources, you can pay off your bills – but you have to find the right solution that will make your payments bearable.
Although the economy seems to be doing great, there is evidence that Americans are struggling with their finances. An expert said that the unemployment rate is low but the income of workers is continually fluctuating. It goes up and down and every time it does, the ability of Americans to pay their financial obligations is shaken.
To make things worse, the news of a positive economic situation makes consumers feel more confident about their ability to borrow money. They keep on borrowing because they feel like the economy can secure their source of income.
However, as it turns out, the cost of living is rising and it is making things difficult for consumers to keep up. The bills are multiplying and the cost is steadily climbing. Unfortunately, the income is not able to keep up. And that is why it is hard for you to keep up with your bills payments.
How debt consolidation can help with bills payments
If you want to make your financial obligations bearable, you might want to consider using debt consolidation to simplify all your payments. This debt solution offers effective strategies that will successfully help you pay off what you owe each month.
Here are the different ways that consolidating debts can help with bills payments.
Makes your monthly payments easier
Admittedly, not all your monthly bills can be consolidated. Your utility bills are based on your consumption so it a monthly payment that cannot be consolidated. Student loans, while it can be consolidated, is not advised. It will probably do you more harm than good if you force it.
But for the rest, you can opt to use debt consolidation to make these bills and debt payments easier to do. You can choose the right debt consolidation strategy based on your financial situation. You will use it to combine all your qualified credit obligations. Once it is consolidated, you only have one monthly payment to monitor. Even if there are other monthly payments like utility bills that will have to be paid separately, it will still be a huge improvement from what you had before debt consolidation.
Gives you better terms
Another benefit of debt consolidation is that it can give you better terms. This means there is a potential to save money on your bills payments. If you can lower the interest rate on your credit cards after you have consolidated it, then that would be a good thing. If you can shorten the repayment period, it will also help you save on the interest. After all, you pay less on the interest if you have a shorter repayment program.
You can also get better terms through the fees and charges that will be waived if you consolidate your debts. All of these, when you add it up, can significantly improve your financial situation.
Allows you to focus on making smarter spending choices
Finally, you can also enjoy lower stress levels if you opt to use debt consolidation to help with bills payments. Once you consolidate debts, there will be lesser bills to monitor each month. It will make you feel like you have less to worry about. Not only that, the amount that you will save because of better terms will make you feel like something improved in your financial position. That can make you feel motivated in getting out of debt.
Since you are dealing with lower stress, you can now focus on making sure that you will make better spending choices from now on. If you have to make extreme lifestyle changes to ensure that you will no longer have problems with bills payments, this is the right time to do it.
Tips to make bills payments manageable
The truth is, you should be vigilant enough with your finances to never let your bills overwhelm you. Before it becomes unmanageable, you should be able to control your spending behavior so you can keep your payments low. If not, you will end up with late payments and it can quickly spiral down from there.
Having late payments has a more negative effect than you think. It causes stress. It can also lead to problems in the economy. In fact, reports reveal that small and medium businesses cite late payments as a major cause of cash flow issues. If businesses start to get into trouble, jobs might be compromised. When that happens, the economy might be in trouble.
This is why you should not ignore the threat of unpaid bills payments. Before it becomes a threat, you need to make sure that you can put a handle on it.
Here are tips that will help you stay in full control of your monthly financial obligations.
Lower your expenses
Start by analyzing your budget plan so you can focus on lowering your expenses. The less you spend, the fewer bills or debts you have to pay. You want to focus on everything that you spend each month. Ask yourself: what are your priorities? What will make you the most productive and is important to get you going? It is not always about what makes you happy – but that is also an important consideration. If your finances are really tight, you want to focus on the expenses that are necessary for you to survive. You can decide on a few wants – like eating out once a week and a specific clothing budget. Stick to that and do not go beyond it.
Increase your income
Once you have lowered your expenses, it is time for you to increase your income. Try to find a side hustle that you can do after your full-time or part-time job. It could be an online job or related to a hobby that you have. Working on something that you love to do will keep you from feeling too tired every day. Find your passion and see how you can capitalize on that. The more time you spend working, the less likely you will spend.
You can also sell some of the possessions that you no longer use. This includes clothes, household decorations, and other items that are just cluttered in your home. Any amount you get from the sale can be used on your bills payments.
Talk to your creditors
You can also be open with your creditors and lenders if you want your bills to be manageable. They are open to negotiations – as long as it will make you pay your dues. There are many things that you can discuss with them to make your monthly payments bearable. You can ask them to move a due date. Or you can ask them to lower the interest on some of your debts. It is also possible for you to request for some fees and charges to be waived. You will never know what they are willing to give unless you ask.