Make the right financial move
Make the right financial move. Sounds easy enough. Trying to decide if debt consolidation is right for you? Here are a few things to consider before making the decision.
Are you overwhelmed by debt?
Overwhelmed with debt but not late on payments yet. When you fall behind on payments your credit score may decrease. And that can impact your ability to qualify for a loan. Anything other than making all of your payments on time will decrease your credit score. Remember on time payments make up 30% of your credit score.
A successful debt relief program is only successful if your account goes past due. Transferring high balance cards to zero interest or low balance cards is not considered consolidation. Having all of the above information will help you make the right financial move.
Are you willing to change your spending habits?
Once you consolidate your debt, it is important that you don´t start using your credit cards again. You have to be willing to change your spending habits and stick to a budget. Sadly we see many people consolidate or settle debt and without the right support system in place return to their bad money habits. However, members of the Budget Build Buy tribe rely on the support system to avoid returning to bad financial moves.
Is your current debt high rate and high balance?
If your debt is manageable and not high-rate, it may make more sense to adjust your budget to help with payments. However, if you have high balances and even higher interest rates it will take a lot of work to lower your debt load. Consolidating or the alternative of settlement would allow you to get back on track. We constantly hear live sometimes needs to reset. Make the right financial move and reset your finances.
