All debt is not equal. Responsible debt can help you afford home mortgages, leases, and other expenses while also simultaneously building your credit score. However, depending on the interest rates you’re paying, other debts – often credit card balances – can loop you into a cycle of paying off creditors for years or even decades.
If you get too deep into the debt cycle, you may need professional help to get out. Braidwood Capital can assist you in this endeavor, helping you secure low-interest rate debt consolidation plans that can reduce overall payments and the number of monthly payments you’re making.
So let’s look at five reasons to consider getting debt consolidation with Braidwood Capital:
Debt consolidation can help you get a lower interest rate
If you earn enough money to pay off your debts and are looking to strategically restructure your debt load. This can be the key to getting a lower overall monthly payment and bunching multiple debts together into one payment.
This is one of the primary advantages of debt consolidation. For example, with Braidwood Capital, reduced interest rates can lower your debt payments by up to 50%.
Interest rates can vary widely among different lenders and borrowers, ranging anywhere from 5% to 36%, so you need to commit to some serious research and comparison on what works best for you.
You are in it for the long haul
If you have a stable job or income source and can afford to pay your debts for an extended period of time, debt consolidation can let you stretch your balance out over many more years and thus reduce monthly payments.
Paying multiple debts every month can be extremely tedious and stressful. Each one may have different due dates, different minimum payments, different financial accounts from which you’re drawing. It’s enough to drive someone to the madhouse.
Debt consolidation helps you to bundle all of your debts into a single easy payment. The idea is to get organized, make your life easier, and pay off your debts as soon as possible.
You’ve already tried managing your debt on your own
If you’ve tried and failed to manage your debts on your own, you’re not alone. The reality is most Americans have debt. It’s not always a bad thing, but if it has damaged your life or added significantly to your stress levels, it may be time to get professional help.
Climbing out of debt on your own can seem like a never-ending battle. Each month you make payments but you’re only really paying off the interest, rarely reducing your actual balance. This can go on for decades if you’re not careful.
Debt consolidation is for people who are ready to take control of their debt. There are two major forms of debt repayment strategies: ‘debt snowball’ and ‘debt avalanche.’ They both share the basic idea – repaying debt faster – but they focus on different targets.
The most common form, ‘debt snowball,’ focuses on paying off your smallest, lowest balance, debts first. Ideally, this will eventually give you money left over at the end of the month to pay off the higher balance debts.
The ‘debt avalanche,’ conversely, looks at the situation as more of a long-game. The focus here is paying off the higher-interest debt first, which would ideally result in you paying less overall interest over time. But this can take significantly longer than the debt snowball and so is less common.
Debt and credit date back for thousands of years. It seems to be a fairly natural aspect of human life. As far back as 3500 BC, Mesopotamian merchants were issuing debt notices onto clay tablets.
So debt itself is not unusual. What matters is how you manage that debt. Debt consolidation plans can be strategic ways to pay less in interest or to pay off debt quicker. Braidwood Capital offers plans for people interested in taking control of their monthly debt cycles and ultimately attaining financial peace of mind.