The 4 Goals Of Debt Consolidation

Law Blog

Do you have a lot of bills that you are struggling to pay?

Do the balances keep increasing each month?

Are you paying too much in interest?

Debt consolidation is a tool you can use to find relief from your debt, and it works well for many people. If you are interested in using debt consolidation, it might help you to understand the top four goals of this approach.

1. To Make Paying Your Bills Easier and Less Time-Consuming

Debt consolidation helps you get out of debt by combining all your debts into one payment. Therefore, one of the goals is to make paying your bills easier and less time-consuming. If you have 10 or 20 debts that you must pay each month, imagine how much easier it would be to make one payment a month instead of 10 or 20. You would save a lot of time through this debt relief method.

2. To Make Paying Your Bills More Affordable

The second goal is to make paying your bills more affordable. By having one payment a month covering all your debts, you will pay less than you were paying before. Debt consolidation requires combining all the debt into one payment, and the payment will be less than the amount you were paying for all the debts. You can also save money on interest. As a result, paying off your debts will be more affordable.

3. To Provide a Light at the End of the Tunnel

The third goal is to give you an end date for your debt payments. The result of this is that you receive a light at the end of the tunnel. When you set up your debt consolidation plan, you will learn the number of months you must make your payments. It might be three years or longer, but at least you would know when you will become debt-free.

4. To Help You Improve Your Credit

The final goal of debt consolidation is to help you improve your credit. If you pay off every debt you have, you might see an increase in your credit score. While you will still owe the same amount of money, it will appear as a loan on your credit report. Having a loan is more advantageous on your credit report than having 20 separate debts.

Debt consolidation is one of many tools available for people who need relief from their debts. If you would like more details about this program, talk to a company specializing in debt consolidation services.


30 March 2021

Business Law Basics: What Small Business Owners Need to Know

When I started my first small business, I had no idea how much I really didn’t know. I was fully prepared to deal with customers, sell product and even handle complaints and returns. What I wasn’t aware of was that there is so much more to it. I was lacking the legal expertise to protect the company and myself. I wanted others to benefit from my experience, mistakes and lessons learned, so I started this blog. From employment law to the legal business contracts you’ll have to sign when you form partnerships, business law is complex. I hope that the information here will help you to be better prepared when you start your business so that you’ll know when you need to call an attorney and when you can handle things yourself.