Is Bill Consolidation an Option for You?
Are your monthly bill payments getting the best of you? Have your minimum payments edged close enough to triple digits to scare you into the reality that your disposable income has dwindled away into the untouchable land of nothingness?
Do you want to get your financial status back on track and your budget back in order? Perhaps it's time to consider a bill consolidation loan and relieve some of the financial stress that's devouring your money. After all, bill consolidation can save you money and lower your monthly debt payments all in one fell swoop.
With bill consolidation, the consumer combines all of his outstanding debts into one total amount rather than several smaller amounts. Typically, you obtain a loan that is large enough to pay off all of your debts. The result is a single monthly payment that is usually smaller than the total sum of all of your individual payments. Plus, you have the same monthly payment throughout the lifetime of the loan.
Another good thing about consolidating your bills into one payment is that it usually saves on the interest cost of your debts. You can trade in the excessive credit card interest rates that you are paying for something a bit more reasonable. The interest paid with the new payment is usually less that the cumulative amount of interest on the old individual bills. This means that you can pay off your debts more quickly because more money will be going to the principal or balance of the loan and less will be spent on interest.
The consequence of consolidating your bills is a win-win situation. Not only do you get a lower monthly expenditure, but also, you save money in the process. You can select the term, or number of years that you want to carry the loan and that best suits your needs.
Shop around for the best rates to maximize your savings. Although better rates are available for individuals with better credit histories, you'll still find variations in terms among different lenders. If you have collateral to put up, such as a home, then you can obtain a secured loan that typically offers lower interest rates than the unsecured loan you will get if you don't have any collateral to put up.
The flexibility of bill consolidation offers consumers a viable way to put their affairs in order. Not only will you have fewer bills to worry about paying on time, but also, you may end up with additional monthly cash to spend or use to pay off their debts sooner.