Ask Away Blog: Is Debt Consolidation with Barron Advisors Right for You?

Is Debt Consolidation with Barron Advisors Right for You?

Wednesday, May 22, 2019


So many people are throwing around the idea of debt consolidation but there are just as many people, if not more, that have no clue what debt consolidation really is and how it could potentially benefit them.   To put it simply, debt consolidation is when you obtain a new loan that takes the place of your current debt.  Sometimes it's a great choice and other times, there are other solutions to check out before consolidating your debt that way.  If you're already feeling overwhelmed, it's okay.  I'll explain everything about debt consolidation below so you can determine if it's the right choice for you. 



What is debt consolidation with Barron Advisors?

Debt consolidation allows you to get a single loan for your multiple piles of personal loans and credit card debt and lets you pay it off with a plan. So basically taking out a debt consolidation loan allows you to
  • Simplify a payment plan with one date rather than several
  • Stay away from a high interest rate, in turn saving you money 
  • Get out of debt at an earlier date
Think of debt consolidation as a second chance at becoming debt free.  You can get a brand new SINGLE loan that has a new (often better) interest rate, a new payment amount each month, and a new payoff date. 

Debt Consolidation with Barron Advisors is a great solution for people that feel overwhelmed by their current mountain of debt. 



How you can get a lower interest rate with Barron Advisors Debt Consolidation:


It may sound too good to be true, but just listen.  Since a debt consolidation loan is considered a personal loan, you can get a lower annual percentage rate (APR) than you could with a credit card.  So you're essentially moving your high interest rate debt to a lower interest rate and grouping it together which will definitely save money in the long run.  

Are there more benefits with debt consolidation? 
The answer is YES there are!  Keeping track of multiple due dates and how much you pay on each and every loan or credit card can not only be exhausting but also overwhelming.  Sometimes it's such a process that people can't even deal with it and they start missing payments.  But when you consolidate your debt you get ONE monthly payment to remember each month.  And you get a whole month to get money together for that ONE payment. You can even get a lower monthly payment if you choose a lower interest rate or a longer plan for paying back the loan, even if you know you can pay it off sooner.  The benefit of a longer loan period is that it can leave you with extra money each month that you need to pay your utilities and buy necessities like groceries and gas for your vehicle. 

Can I choose my own payoff date with a debt consolidation loan? 
Of course you can, and it mainly depends on your end goal.   For those looking to get out of debt as soon as possible, you can just seek out a lower interest rate on the debt consolidation loan and give yourself an earlier deadline to repay the loan.  If you need extra money each month to get by, having a lower interest rate  and a longer payoff term allows you to obtain that extra money.  Now, if you choose a shorter term for your loan, your monthly payments can be higher but you won't be paying as much interest in the long run so you're still saving money.  You have to basically sit down and decide what situation is best for yourself and what your long term goal is.  There are different options for a reason, because we all have different needs depending on where we are in our financial journey. 

Nothing good comes for free.
It's important to remember that even a debt consolidation loan can have a price to pay which is in the form of an origination fee.  This can often be 1-6% of the total loan amount.  This fee gets taken out of the loan funds before you even get them so you ALWAYS need to take that into account and make sure the amount you borrow is enough to cover your debt AND the origination fee. 

Becoming Debt Free!
If you never change your behavior that has brought you into all this debt, you'll never actually become debt free.  You need to take a long hard look at your spending and saving habits and ensure you are doing the right things to stay OUT OF DEBT.  This means you can't get into any new debt! Make sure you get a on a budget and figure out a more responsible way to spend money each month.  You should have a system in place to track your spending and even your debt payoff progress.  It's WAY too easy to get into debt and it can be VERY difficult to get out of it.  So if you are going to consider a debt consolidation loan from Barron Advisors you absolutely must be ready to make the commitment to better financial behavior in the future. 

Is debt consolidation the right choice for you?
There are times when it may not be worth the hassle and fees of debt consolidation.  If you already have low interest rates than there may not be a very big difference.  Some people just aren't ready for a debt consolidation loan yet and may want to try some other tactics to get their financial situation in order.  

Sometimes you can come up with your own plan to pay off debt and make major changes in your spending habits so you have more money leftover each month to put towards that debt.  Some people are more than willing to make lifestyle changes like staying home instead of going out and having spending freezes with parts of their budget like clothing or entertainment.  Everyone is different so there are many different options for everyone. 

Either way, just know that there's always a way out whether it's debt consolidation or something different.  Make sure you speak to a professional to get more information and see what works best for your specific situation.  

Are you drowning in debt? Have you looked into your options?  



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