Should You Consolidate Your Debt?

Woman putting coin in piggy bank

If you’ve racked up a fair chunk of debt across different credit cards and loans, a debt consolidation loan might sound like a good idea. Essentially, you take out one large loan that’s used to pay off all your smaller existing loans, leaving you with just one bill to pay each month. Advantages can include:

  • Simple Payment
  • Convenient Communication
  • Easy Planning
  • Lower Fees and Charges
  • Longer Loan Periods

However, that doesn’t mean that debt consolidation loans are right for everyone. Read on to find out more.

The Benefits of Using Debt Consolidation Loans for Debt Management

  • Simple Payment: It’s much easier to make one debt payment each month instead of several. You won’t need to spend as much time on your financial affairs, and you’ll likely find it easier to remember when you need to pay.
  • Convenient Communication: Sometimes you need to talk to your creditor. That’s easier when there’s only one.
  • Easy Planning: Having one loan makes it simpler to figure out your monthly budget, how much you need to save, and when you’ll finally find yourself free from debt.
  • Lower Fees and Charges: It’s common for credit cards and other small loans to charge high fees and interest rates. Commonly enough, the amount you save each month goes towards those fees and charges rather than the principle. You could save on fees and interest with a debt consolidation loan.
  • Longer Loan Periods: When you take out a large loan, you usually have the option to spread payments over a longer period. You may be in debt longer, but you’ll also likely be able to reduce your monthly payments to a more manageable number.

Should I Get a Debt Consolidation Loan?

Before letting those potential advantages go to your head, remember that debt consolidation loans aren’t just a quick fix. You’ll still need to make that one payment each month and make changes to your spending habits. These loans are ideal, but only if you know you can make the monthly payments.

Look to Xpress Cash for Debt Consolidation Loans and Further Financial Assistance

At Xpress Cash, we understand the benefits and drawbacks that come with debt consolidation loans, so contact us today or visit one of our Michigan, Wisconsin, or Idaho locations for any further advice or assistance.