As the holidays are fast approaching, you need to consider the debt consolidation benefits that you can maximize to boost your budget this season. Back in 2017, consumers were expected to spend an average of $967 for the holidays. This year, it can only be assumed that the amount would probably stay the same or maybe exceed it.
If you are already running on a shoestring budget, the upcoming holiday expense might tip you over the edge. One wrong move and you might not be able to enjoy the holidays altogether. This makes it all the more important to tread lightly and choose your next financial move.
What you want to do is to make sure that you can free up some money from your existing budget. If you can cut back on some of your expenses, the extra money can be used to pay for your holiday-related expenses. If you look hard enough, you will find areas where you can save money. Even with your debt payments. If you understand the real debt consolidation benefits, you will know that it can be used to help you lower your monthly debt payments.
What debt consolidation benefits do you get?
Debt consolidation can help you manage your finances better as the year comes to a close. More than anything, that is the most important lesson that you need to learn while you are trying to get yourself out of debt. But apart from that, there are other debt consolidation benefits that you can also enjoy. Here are just a few of the benefits you can expect when you consolidate your debts.
You get to focus on a single payment
Part of the problem when you have so many debt obligations is that you sometimes overlook some payment deadlines. Once this happens, it automatically gives your lenders the right to start charging you for penalties and other fees. This will lead to a spike in your succeeding payments and puts you further back the red line.
One of the debt consolidation benefits that you will enjoy is having all your debts under one account. This way, you only have to worry about one payment every month. On top of that, you only have one interest rate and one due date to keep in mind. This will help drastically reduce the chances of forgetting a payment due date.
You reduce financial stress
Financial stress and anxiety always come from things we cannot control. This happens when debt takes over your finances and you are left fo simply react. You are left to just wait what your total bill will be every month all while trying to figure out if you can make that payment or not. This incessant thought can bring you unnecessary financial stress.
CNBC even points out that almost 30% of respondents are constantly stressed out about their finances. It is not surprising because money takes a lot of practice to manage it properly.
But if you can simplify your debt payments through consolidation, it becomes less of a burden already. This is one of the debt consolidation benefits that you need to take advantage of for the coming holidays.
Collection calls can be put on hold
If some of the debts that you consolidated are already in collections, the only way to make the harassing calls stop is by paying them off. If you do not have the money to do that, borrow a loan that you can use to consolidate your debts.
This will bring you great relief especially as the holidays are fast approaching. These calls can put you in a constant state of fear and stress. You never know what time of day your phone will ring and the stress in knowing you have outstanding obligations can be a big burden.
How do you get started with it?
Now that you know the debt consolidation benefits that can prove to be useful during the holidays, it is time for you to find out how you can tap into that. There are a couple of things that you can do.
Look for professional help
While DIY debt consolidation can work, it is not for everyone. The thing is, admitting to yourself that you have debt issues is hard. It is harder if you have to admit it to someone else. The humiliation is sometimes one of the reasons why some people force themselves to consolidate debts on their own. But the truth is, you do not have to feel ashamed. There are millions of Americans in your position and having debt is not uncommon.
Not only that, keeping the debt relief efforts to yourself is not always a wise thing to do. If you do not know what you are doing, you might end up making things worse. So just look for a reliable debt relief company that has a track record of helping consumers get out of debt. The sooner you do it, the faster you can achieve debt freedom.
Use a zero percent card
Another option that you can use is a 0% interest balance transfer card. This is like a credit card that is offered with a 0% interest. That means you will not be asked to pay the interest as long as you are still within the introductory promo period. You can transfer multiple debts here and benefit from paying only the principal amount.
A balance transfer card is an effective way to consolidate debts and save money. But you have to make sure that you know how to maximize the debt consolidation benefits that you can get from it. Make sure you can pay off your debts (or at least a significant part of it) before the promo period ends. If you know how to work it to your advantage, you will find yourself able to manage your debts well – making your holidays a more positive one.