Are you in a bad financial position and owe lots of money? Consider hiring debt management partners who can help you consolidate your debt. Learn more here.
If you’re anything like the average American, you’re certainly carrying some kind of debt. Maybe you have a student loan and an auto. Maybe your current house is mortgaged and you’ve got a couple of credit cards in your purse.
Consumer debt in the United States now stands at $14 trillion – an all-time high. So, if you think you’re in debt alone, you’re mistaken.
The one thing with debt, though, is you must repay it. And one top debt management strategy is debt consolidation.
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But do you need debt management partners? Continue reading to learn more about these partners, as well as some of the top reasons to consolidate your debt.
Who Are Debt Management Partners?
Debt can be a complex issue, especially when you owe a lot of money to multiple lenders. Managing these debts can be even more complex, especially if you don’t have any debt management expertise.
This is where a debt management partner comes in. This is usually an individual or company that specializes in debt management. When you hire them, it will be their job to audit your finances and devise a suitable debt management strategy. In some cases, these professionals can negotiate with your lenders to revise the terms and conditions of some of your loans.
So, do you need a debt management partner? The answer isn’t a straight yes. It really depends on the nature of your debt and your debt management skills.
Reasons to Consolidate Your Debt
Now that you know who a debt management partner is, let’s focus on the reasons to consolidate your debt. Bear in mind that a debt management partner is likely to recommend debt consolidation, especially if you have multiple high-interest loans. When it comes to student debt for instance, there are multiple benefits of refinancing student loans.
Get a Lower Interest Rate
The primary reason to consolidate your debt is to wind up all your existing loans and get one loan that charges a lower interest.
Let’s say you have 3 personal loans. The collective outstanding balance is $10,000, and the weighted annual interest is 12 percent. This means every year you will be paying $1,200 in interest alone.
When you take out a consolidation loan, you will get at least $10,000 to pay off the existing loan balances, and the interest rate will be lower, say 8 percent. As a result, you will be paying $800 in interest per year, which means you’ll save a whopping $400 during the same period.
One Lender, More Peace of Mind
There’s nothing as annoying as dealing with multiple lenders. If you’re late on your loan payments, for instance, imagine receiving reminders from multiple companies.
Debt consolidation takes away this trouble. Because you get money to pay off the consolidated loans, you effectively get those lenders off your back and mind. You’ll only have one lender to deal with, which is good for your peace of mind.
Be sure to learn more about consolidating debt, because these aren’t the only reasons to consolidate your debt.
Let Debt Management Partners Help You Consolidate Your Loans
Debt management partners can help you get out of debt, no doubt. They have a couple of tricks up their sleeve, and debt consolidation is one of the most effective. If they recommend it, you have every reason to embrace it.
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A professional writer with over a decade of incessant writing skills. Her topics of interest and expertise range from health, nutrition and psychology.