A Beginners Guide To Debt Consolidation

Let’s begin by asking the simple question, what is debt consolidation?

It is a very good question that many people ask, so here is one of the better ways to look at it. In your home, you probably have some kind of bundle deal with your cable/internet/phone provider, whereby subscribing to all three of those services, you save a decent amount of money versus using one company for your cable, another for your internet and yest another for your cell phone. 

A debt consolidation loan works exactly the same way because you bundle all of your bills together, and then negotiate a lower rate and repayment plan that you can afford. It also simplifies your monthly payments, and it is easier to keep track of your monthly expenses. For example, if you have three credit cards with APRs of 16%, 19% and 24%, you can consolidate those accounts into a single loan with a rate between 6-15%.

Should I Get A Debt Consolidation Loan?

The best suggestion is to speak with our team at AG Mortgages, and we will help you understand your current finances, and provide you with a bespoke debt consolidation solution, created for your specific requirements. 

We work with people who are dealing with high interest debt from multiple sources, and need a solution they can afford, before these debts get out of control and negatively affect their lives. It is never too late to consolidate your debts, but we suggest you contact us as soon as possible, so we can turn your current situation around as quickly as possible. 

The Benefits Of A Debt Consolidation Loan

Debt consolidation puts all of your debts under one umbrella, at a lower rate than whet you are currently paying. This means that now that your creditors are paid, or being paid regularly, your credit rating improves. It also gives you a better understanding of your finances, which helps you budget more effectively. 

Understanding your budget is probably the biggest benefit of a consolidation loan in the long run, because not having a full understanding of your budget is more than likely the cause of having more monthly debt that you could effectively pay off. It is fairly common because we aren’t born with this knowledge, and most of us have to learn it along the way. Once you have that knowledge, it is your for the rest of your life, and it will serve you long after the debt consolidation is paid off.