Should You Consider a Debt Consolidation Loan?

June 30, 2009 by  Filed under: Debt 

Today’s harsh economic times are putting a strain on everyone’s finances. Even people who have always enjoyed financial freedom and a great credit standing before are now facing tough budgetary times and lower credit scores.

The culprits are many: soaring inflation and interest rates, the high cost of living, unstable job market and stagnant pay scale. But the results are the same. Many families are struggling just to make their monthly obligations. Some are even facing foreclosures, repossessions or bankruptcy.

While your financial situation is probably not this dire, there are many reasons why you should take a look at your finances and see exactly what your income is paying for. Look especially at your credit cards. How much interest do you pay per month? What is your interest rate and does it keep getting higher? The amounts may shock you.

Now think about how you could spend all of that money that is being wasted on high-interest credit card charges. Wouldn’t you love to pay off those debts and put that money back into your pocket? Well you can with a debt consolidation loan.

A debt consolidation loan does the same thing for your finances that paying off your credit cards outright does except that you do not have to come up with the money all at once. A consolidation loan finances your credit card balances together on one loan and charges a much lower interest rate than you are currently paying to the credit card companies. All of that money saved in interest means that your debt will be paid off quicker, and you will even pay a lower payment each month while you do it.

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

You must be logged in to post a comment.

Prev Post:
Next Post: