Every person on the globe has needs which he fulfills from the salary that he gets. But a salary is not always enough to keep you and your family happy. This is why many people move their mind towards taking loans, EMIs, purchase on credit cards, etc.
The more you purchase outside your salary, the more amount of debt that is generated against your name and you are put in a never-ending race of clearing your debts. Over a certain period of your lifetime, you purchase many items via these extra resources, but all these resources take interest on the facility of the advance amount that they provide you. In the end, you stop chasing your dreams, you stop saving money and just run in the race of clearing your debts. It then becomes a race in which you are the only participant, and still, you come second.
This is because of the interest that is being charged on the base amount of loan or the credit card bill. This interest is offered at some percentage in starting, but over a period, keeps growing. This almost kills your pocket. One point that adds to the beauty of this killing is that you keep paying a different interest rate on different bills and when you sum up the total interest you are paying, it is nearly 30-40% of your base amount, while you would think you are paying only 12-15% at the promised interest rate.
Also, if you invest in something and take a loan for the same, you need to pay a certain sum every time to clear the loan for your investment. This brings in more debt. Investment and debt are a combination that makes a loop which is extremely difficult to break. But, with proper planning and a certain solution can be done.
How can you get out of the vicious debt circle?
So, the question comes here is that is there any solution to come out of this loop? The Answer is – Yes. What Word attributed to this solution is Debt consolidation. Now, let us understand the term debt consolidation and how it a solution to break the loop and clear your debts.
Let’s consider a case when you have to pay medical bills, and you have to pay credit card bills every month before certain due date, you have a loan on your head to clear as soon as possible, you have other expenses. With a conventional method, you pay for each one every month, but on an interest rate. Debt consolidation is a practice to combine all your debts and bring it in a single folder. All you need to do is to pay to this consolidation program, and you are free.
It is a must solution for those who make investments in certain stock markets making it an Investment and debt combination.
Benefits of Debt consolidation:
There are numerous benefits of Debt consolidation that we shall understand:
- Less interest payment: This is the first and foremost benefit due to which Debt consolidation has come into existence. To come out of the debt loop, you need to be a client with a firm that provides you with this service. Once you combine your debts, total interest to be paid will always come less than what you would have paid if you hadn’t combined. Without this program, you may need to pay 18-20% interest on the principal, but with this program, you can reduce the interest rate to 12-13%.
- Savings: As stated above, this reduces your interest rate on your consolidated bill. This reduction in the interest amount can always act as a source of saving.
- Clearing debts more quickly: Once you start saving money while paying your debt under a consolidation plan, you make savings which can easily be used to clear your debts.
Once you decide to do debt consolidation, the market is getting full of options that are available for you to choose. On the one hand, some tricky firms will get you into a program, will try to snatch your money and drain you more. You must be aware of that. On the other hand, there are trustworthy firms in the market that help you to clear your debt. That too at a minimum fee and interest rate which is bearable to you. One such firm is National debt relief which offers you debt relief program to make you free of debts as soon as possible.
Let us have a look at the advantages that they offer:
- No money without reduction of debt: When you decide to consolidate, your aim is clear to save money on interest. National debt relief has made it a practice that unless they reduce the debt currently on your shoulders, they won’t take a single penny from you. This increases the chances of saving.
- Top ratings from previous customers and agencies: National debt relief is one of the most trustworthy firms that have made it possible for many consumers to come out of the black hole of debt. This has made them earn good reviews and ratings from previous customers. Thus, it shows how better they are at helping you.
- Single payment monthly: Once you consolidate all your payments in one payment at NDR, you have to make a single payment including their fees to National debt relief; they will take care of clearing your rest of the payments. Thus, it gets easier for you to organize your finances and plan your livelihood in a better way, bringing in more happiness and financial freedom for your family.
On your salary day, you do not feel happy anymore because you have credit card bills and loans to clear. No one enjoys paying an extra amount than they borrowed. Thus, Debt consolidation is one of the most efficient solutions that you can opt if you wish to get rid of monthly credit card bills and loans, which are just killing your finances. Thus, one must understand the need to opt for debt consolidation, to regain financial health.