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What do 80% of Americans have that none of them want?
Debt plagues an astounding number of us. It ranges from inconvenient bills (say, for student loans), to life-altering amounts — like not being able to pay the rent or afford groceries.
The most common debts Americans carry are mortgages, unpaid credit card bills, car loans, and student loans. Debt knows no boundaries, affecting everyone from the 22-year-old college grad to the elderly and newly-widowed.
When the bills start to pile up, and options seem limited, what can you do?
Here, we look at the question, “How does debt consolidation work?” Knowing the answer to this may save you money, time, and stress.
Let’s see how this strategy may be the solution to your debt problems
What Is Debt Consolidation?
Let’s say you have multiple bills coming in that you just can’t manage. There’s the mortgage, you’re paying off your car, you’ve got student loan bills, and there are still medical bills coming in from a broken leg two years ago.
Having all these different bills can be overwhelming. It may feel disorganized, too, adding to the chaos of money owed. There are various due dates, payment amounts, and collectors.
Debt consolidation essentially combines these bills into one payment. This method allows you to stay organized and focused on paying one bill rather than many. As a recent college graduate you can use a student loan debt consolidation company to help you utilize this program. You’ll have one statement, one due date, and one establishment to work with if you need help or have questions.
Additionally, many times, consolidating your debt results in lower interest rates, too. So, it may end up becoming more affordable.
How Does Debt Consolidation Work?
Let’s get into some details now.
To get this one, low-interest payment, you’ll need to work with a debt consolidation company that you trust. One simple and straightforward way to find this establishment is through the BBB (Better Business Bureau).
This third-party organization vets businesses for quality and transparency. Once you’ve found a company you can trust, you’ll discuss debt consolidation options with them.
One of the most common methods of debt consolidation is taking out a loan with a bank. With this loan, you’ll pay off your debts. Then, rather than paying all your individual debts, you’ll pay back this loan amount in monthly installments.
Typically, this loan is lower-interest. So, now you have one payment to make every month (rather than several), which makes the process much smoother. Your debt isn’t reduced, but it’s significantly more manageable.
You Deserve a Debt-Free Existence
Debt can ruin our ability to live the lives of our dreams. It can prevent us from taking vacations, starting families, accepting a dream job because it doesn’t pay enough. We all deserve to be debt-free.
How does debt consolidation work? Now that you know the answer to this question, it may be time for you to give it a try. Debt consolidation might be able to give you some of your pre-debt life back.
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