The average American has four credit cards in their wallet right now. They also have about $8,500 worth of credit card debt.
In some cases, people are able to juggle multiple credit cards and credit card balances without a problem. But in others, people have a tough time keeping up with their balances when they’re spread across several different credit cards.
Do you fall into the second category? If so, you might be asking yourself: “Is debt consolidation a good idea for me?”
It’s a good question to ask, especially if you’re struggling to manage credit card debt and any other debt that you’ve racked up over the years. A debt consolidation loan can help you bring all that debt under one umbrella so that you can pay it off quicker than you would be able to otherwise.
Here are five reasons why a debt consolidation loan might be what’s best for you at the moment.
1. The Interest Rates on Your Various Debts Are Too High
Are the interest rates on your various debts in the high teens, the 20s, or even creeping up into the 30s? It’s going to take you forever to pay your debts off if you’re forced to deal with interest rates that are that high.
Debt consolidation is definitely a good idea if you’re saddled by debts with high-interest rates. A debt consolidation loan will make all the sense in the world for you.
With a debt consolidation loan, you can combine all your personal debts into one debt with a much lower interest rate than any of the interest rates you have now. That alone will make your debts more manageable and help you pay them off faster.
2. You Have So Many Monthly Debt Payments That You Often Forget to Make Them
Some people don’t think that missing a debt payment here and there will do them much harm. This couldn’t be further from the truth.
When you miss a debt payment—even a single payment—a creditor will contact the credit bureaus to let them know. It’ll show up on your credit report within a month or so and serve as a blemish on it. It’ll bring your credit score down in no time.
You should avoid having this happen at all costs by making your debt payments on time. This can be difficult to do when you’re making four or more payments each month, all on different days.
If you find that you’re forgetting to make debt payments because you have so many of them to make, debt consolidation can make your life so much simpler. You can start making just one debt payment each month to a single creditor.
You shouldn’t have to worry about missed payments popping up on your credit report anymore.
3. Your Credit Score Has Plummeted Due to Your Debt
As we just alluded to, missed debt payments on your credit report can drag your credit score down. But they aren’t the only things that’ll take a toll on your credit score if you have a lot of debt.
Your credit score is also going to suffer if you’re carrying around too much debt at once. Your credit utilization ratio is going to be sky high if you have credit cards that are close to maxed out, and it’s going to cause your credit score to plummet.
Generally speaking, your credit utilization should sit under 30% at all times. If it’s higher than that, you may want to consider debt consolidation.
You can bring your credit utilization down and send your credit score skyrocketing in most cases when you use a debt consolidation loan to pay off your different debts.
4. Your Debt Is Causing You Too Much Stress
You probably have more than enough stress in your life as is right now.
People stress out over just about everything these days. From what’s happening at home to what’s taking place at work, there is so much stress to go around.
Why let debt add even more stress to your life? If you’re spending all your time juggling debt payments and making sure they’re made on time, it’s no doubt having an impact on your stress levels.
Debt can even wreak havoc on your mental health if you’re not careful. There have been many studies done on the clear connection between debt and mental health issues.
You can get your stress under control and make your mental health more of a priority by using a debt consolidation loan to your advantage. You’ll sleep better at night knowing your debt isn’t going to keep you down for much longer.
5. You Can’t Imagine Ever Climbing Out of Debt
Are you beginning to feel like you’re going to be in debt forever? There are many Americans who share this same feeling.
One recent study suggested that about 25% of people don’t think they’re ever going to be able to get out of debt. That’s a very depressing statistic that shines a spotlight on just how debilitating debt can be.
If you’ve felt this way, you should know that you can get out of debt. You just need to be smart as far as how you go about doing it. Using a debt consolidation loan can provide you with the results you’re looking for when paying down debt.
Is Debt Consolidation a Good Idea for You? Check Out Your Options
Is debt consolidation a good idea for you? If you think it is after reading through the reasons listed here, you should check out the options you have right now.
We make it easy for you to see the debt consolidation solutions that are out there. We’ll match your application with the best debt consolidation offers available to you. You can browse through them to find one with a low-interest rate and manageable monthly payments.
Complete this form today to get access to your debt consolidation options.
