3 Reasons Why You Should Choose a Debt Consolidation Company to Get Yourself Out of a Financial Hole

Personal debt is a common and serious problem in the US, and there are many reasons why people stay in debt. Credit card debt is particularly common, and for many, it’s a long-term problem. Failing to budget properly, thoughtless spending, underemployment, and a simple lack of knowing how to get out of debt are common ways people become trapped. While large or long term debts are especially stressful, it’s important to keep in mind that it doesn’t have to stay that way. Those who are in debt can take back control with the right help. 

Through a company like Solid Ground Financial, it’s possible to form a plan that will help you control your debt and pay it back in a way that works for you. The following are some of the best reasons to seek help with your debt.

Manage your payday loans

Payday loans can be a good short-term solution to a financial emergency, but many who apply for them simply find themselves in worse debt when it comes time to repay. The risks of such loans can easily outweigh the benefits, and interest rates skyrocket rapidly. Constant calls from creditors and an ever-draining checking account are just a few consequences of payday loan debt.

Luckily, through a payday loan relief plan, you can start taking control of your situation. A debt consolidation company will get in touch with your lenders to negotiate your loans moving forward. This generally involves efforts to reduce your interest rates, and the consolidation company will likely help you set up an account where small payments can be deposited on a regular basis until your loans are paid. By handling all your loans through one payment, things are much easier to keep track of, and you won’t have to worry about harassing calls. You’ll also avoid any further interest increases or late fees you would have otherwise incurred.

Control credit card debt

It seems credit card debt is constantly on the rise in the US, and roughly 40 percent of households deal with credit card debt, with an average balance of $5,700. Credit card debt is among the most common ways people stay in debt long-term, and many resort to dangerous options like home equity loans to try to escape it.

Similar to payday loans, however, there are credit card consolidation plans that will allow you to collect your debts into one simple monthly payment. Solid Ground Financial’s nationally recognized program allows you to work with your creditors to lower your interest rates, and it has no minimum financial requirements. Services are available in English and Spanish, and plans can help you pay off your debt in a period of three-to-five years. Plans to avoid future financial difficulties are also included.

Credit repair

Once your debts are under control, a debt consolidation company may even be able to help you fix your credit. Late payments and debts are among the worst offenders to leave you with a bad credit score, and improving your score will be important for your future financial goals. Credit relief programs generally start with contacting the credit bureau to update your credit report and potentially remove damaging inquiries. You should also receive educational materials on restoring your credit and the services of a counselor to guide you through the process. This is not a simple job, and programs will generally take at least 90 days to see results. Still, improving your credit and maintaining good financial habits is the best way to ensure you don’t repeat past mistakes.  

Personal debt is a serious problem that affects a large portion of the population. Luckily, though it may not seem as such, there are ways to dig yourself out of this hole. With the help of debt consolidation companies, you’ll be able to take small but effective steps in ensuring that your debt is paid off in the shortest time — and amount — possible.

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