Debt consolidation: One tip to save thousands of dollars
Debt consolidation: One tip to save thousands of dollars
Getting lower rates can make you think that you're almost debt free. However, you still need to pay your debt every month even with lower rates. Most of the times, a debt consolidation program will not help you control your spending even though that's the core of the problem. The reason you enrol in a program in a first place is the fact that you used your credit card too often and as a result you're not able to pay your bills. If you don't get rid of your bad habits even the best program will not make you debt free.
That's the reason why you need a plan. List your monthly expenses and make sure you can pay for all of them. Another tip is stopping using your credit card, unless you really have to. Sometimes, if your foreign country, your card can be really helpful. However, it's not the best idea to go in a mall where you know you will be tempted.
Mall managers are really good at making you buy things you don't need. Always go to a mall with a list and just buy what's on it. If you really can stop yourself from spending too much you can also order online. If you find a store who only sells food you obviously will be less tempted.
Also make sure that the debt consolidation company doesn't offer you a program which will make you stay in debt longer. Good salesman will say you they can lower your monthly payments by 50%. What they don't tell you is that you will stay in debt for a few more years. Always make sure you'll not stay in debt for too long.
It can be really hard to pay the same amount every month if you have other projects like buying a house. This is why you need to read at least 5 times the contract the company gives you. Also talk about the service with you family and close friends. They will help you to find out if the offer is legitimate or not.
If you check if the time you will stay in debt is not too long and that if you check you will not pay a significantly higher amount than the initial amount of the loan debt consolidation can be a good solution for you. But scammers use a lot of other different techniques so make sure to be careful to not lose thousands of dollars.