Credit card debt is taking over the lives of many Americans, and multiple companies like Symple Lending want to help pay off your debt. Whether you owe several credit cards or have medical bills, Symple Lending, and other debt consolidation companies, can help get your finances back on track. Learn more about getting out of debt below, and be sure to browse our website for more financial tips and resources.
Tips for Paying Off Your Debt
To get started, add up all your debt, including your high-interest credit cards, medical bills, small loans, etc. It can also include student loans, your mortgage, or an auto loan, which will take longer, but still debt you want paid off.
- Know your debt. As you write each debt you owe, make sure it includes the interest rate, monthly payment, and due date.
- Calculate your payment. Take the minimum payment and interest rate to get the minimum payment you must pay each month. This should include any monthly fees for loans.
- Don’t miss a payment. Missing a payment adds fees and slows your process of paying off your debt.
Pro tip: Many financial experts recommend creating a table that lists the balances, interest rates, monthly payments, and due dates for each debt you’re trying to pay off.
Does Debt Consolidation Work?
Many people often wonder about debt consolidation, which is a fair enough question. Like with many things, there are pros and cons. Learn the good and the bad below, and see if debt consolidation is right for you.
Pros
Reduces Payments: Consolidating your debt allows you to take multiple debts and put them into one single loan, reducing your monthly payment, as well as the number of monthly payments. Doing this can improve your credit by avoiding late or missing payments. Consolidating debt allows you to see when your debt will be paid off.
Pay Off Debt Sooner: With one monthly payment, you can get your debt paid off sooner since the payments are more affordable and easier to manage.
Lower Interest Rate: If they qualify, people can take advantage of a lower interest rate through debt consolidation and pay off the debt faster, saving hundreds in interest.
Cons
Could Have Added Costs: Like with any type of loan, there could be additional costs. And, those with lower credit could experience higher fees and rates.
Higher Interest Rates: Those with little to no credit can experience higher interest rates. However, this rate can still be better than what they’re currently paying on their debt individually. It’s important to add everything up to see where the better rate/offer is.
Learn More About Paying Off Your Debt
While debt consolidation can help pay off your debt, people need to know how to manage their money to avoid experiencing this again. Visit our website to learn more about debt and ways to manage your finances.