Bayport Blog

5 Reasons why you should consolidate your debt

In today’s world, bills seem to overrun us at every turn. We often find that we get into a situation where we can no longer control our debt and have to find a way to finally get our finances under control. If this sounds like you, it may be wise to look at options to consolidate your debt and get a better handle on your financial life.

How to take control of your financial wellness

Applying for credit can often come with great excitement and fun as you get a sense of financial freedom, allowing you to buy that new car, pay for your new furniture, register for your new studies, or take that much desired dream vacation.

However, if you find yourself in a situation where your debt becomes unmanageable and debt stress starts to set in, your financial wellness starts to deteriorate, which can put a lot of pressure on your emotional well-being. However, you don’t need to let financial stress rule your life, there are a number of debt management options that can offer you debt relief and improve your wellbeing; one of which is to consolidate your debt.

5 Good Reasons to consolidate your debt

1. A single monthly payment – When you consolidate your loans, you are combining all your debt into one single payment on a monthly basis. Before debt consolidation, you had to worry about making sure each creditor was paid on time and it could become a hassle trying to keep up with it all, eventually forgetting to pay one at all, which could be hazardous to your financial life.
2. Lower monthly payments – Usually the single monthly payment is e considerably lower than what you were originally paying when you had to pay multiple creditors with varying interest rates.
3. Improve your credit score – Your credit record reflects when and how you pay your bills. Once you start making regular payments on time, your credit score will begin to improve because you are showing noticeable improvement in the way in which you manage your debt payments.
4. End The Phone Calls – Once you begin the consolidation process and begin making your payments on time each month, your creditors will stop calling you on a daily basis. This alone will make life a whole lot easier, you will never have to be worried when answering your phone again.
5. Become Debt Free Faster – Once you begin the debt consolidation process, you will find that your debt will be eliminated and paid off in as little as one year and up to three years’ time which means that you could be living a debt free life in just a few short years.

If you are struggling with debt management, contact a financial wellness consultant at Bayport Financial Services to discuss the various debt management and credit options available to you.