Should I Consider Consolidating My Debts?

The answer is absolutely yes.

If you are dealing with any type of financial issue, you should consider all options. If you are handling your debts just fine, but you can consolidate and pay less interest, you should definitely do it as well.

The fact that you are looking at debt consolidation signals that you have a financial issue. It doesn’t matter if you are dealing with a large financial crisis or if you are just looking to get a lower interest rate on your revolving debt, when an individual has a financial issue, they should look at all available options and see what works best for them.

Debt consolidation is an option and should be considered by everyone. The debt consolidation industry has grown over the years, and it does help some people. Unfortunately, by the time an individual usually considers debt consolidation, they could be in over their heads, and the debt consolidation plan may not work for them.

If a person is considering the debt consolidation option, they need to look at it with their eyes wide open. Debt consolidation could ruin your credit score for the next 7 years. Plus, many debt consolidation plans fail because the payment is too high.

There are also very high costs associated with consolidation. So, the individual must weigh these factors when deciding what the best option is for them or their family. If, after weighing all the financial factors and the risks associated with that consolidation, a person decides to consolidate their debts, they should do so with the mindset of eliminating their debts as well.

Many times, people will consolidate their debts, get themselves into a new payment plan with a new lender at a lower interest rate, and then go back and use the available credit that they just paid off. In other words, they are not really making headway on their debt, they are only increasing the overall debt load.

Obviously, this is not a strategy you want to employ. If you’re going to use that consolidation as a strategy to eliminate your debts, you need to focus on debt elimination after the consolidation.

So, if you think about it, action step number one is to consolidate the debts at a lower interest rate and with a lower monthly payment. Step two would be to focus exclusively on paying off that debt by making larger payments and slowly eliminating the principle owed.

Remember that no one can charge you interest on principle, which does not exist. There is no way to spend yourself into prosperity. You need to make each penny, nickel, dime, and quarter work hard for you. Unless all your debt is at a zero percent interest rate, there is no better use for your extra money than debt elimination.

If you want to live debt-free, you must pay off all of your debts and learn how to live within your means. Then, once your debt is eliminated, start investing the same amount of money you used to spend on debt reduction. It’s that simple.

If you aren’t disciplined enough to do that on your own, or you can’t seem to get yourself out of the debt cycle, it is imperative to find a professional to help you with consolidation and elimination of your debts. Don’t wait. Each day you delay addressing your debt will cost you money. If you are interested in filing for bankruptcy in Florida, call The Dellutri Law Group, PA at (800) 391-4337 or fill out our online contact form today to schedule an initial consultation. We have offices in Fort Myers, Naples, Orlando, Port Charlotte, and Tampa, FL!