The financial climate makes debt management and monthly repayments difficult for many people. If you are battling to honor your monthly repayments, know that you’re not alone. Debt consolidation exists for these circumstances, giving you an opportunity to renegotiate your repayment terms and consolidate many small debts into a single monthly installment.
1. DO: Fix The Cause Of Your Debt (Spending Habits)
Looking for alternatives to payday loans and the other sneaky ways debt creeps into your life is really important. Sure, the debt you’re struggling to pay isn’t always about your spending habits; sometimes you have to take out a loan for a medical emergency or another unavoidable expense. Most of the time, however, recurring debt is due to your habits.
You have to work on your money management skills in order to fix your financial problems. Look into self-help courses or free money management tools and apps online. Managing your personal finances has become easier thanks to the availability of these free tools.
2. DO: Agree To Terms That Are Realistic For You
You’ve decided to look into debt consolidation as a way to reduce the total amount you spend each month on repayments. That’s great. There are some encouraging success stories out there of people who have managed to make great progress thanks to debt consolidation.
However, this does not mean that the first offer you look at is going to improve your situation. Only agree to debt consolidation if the deal reduces your total monthly repayments or gives you some sort of significant cashback. It’s only going to benefit you if it improves your current situation.
3. DO: Look At All The Available Options Before You Sign An Agreement
Your first point of call should be to contact debtors to make repayment arrangements that fit your budget better. Often, debtors have an inhouse repayment agreement guideline ready for these situations (you’re not alone, many people need to renegotiate payment terms).
If you need further assistance with repayments, consider seeking outside help, but don’t limit yourself to debt consolidation. Look at debt management and debt settlement options as these offer alternative parameters that may suit you better.
4. DON’T: Fall For A Scam
Sadly, the easiest person to scam is a vulnerable person. If you’re battling with debt and failing to meet your repayment agreements, you are vulnerable. There are many scams offering debt relief. They usually offer unrealistic “help” that sounds too good to be true. In the financial services industry, if something sounds too good to be true it usually is. Look for institutions that are regulated by governing bodies, and take some time to understand what a scam looks like.
5. DON’T: Struggle Alone
If you have looked at a few debt consolidation options but none of the service providers offered a deal that would truly bring you relief going forward, don’t struggle alone. Don’t give up and battle on either. See a debt counselor or get debt management assistance. Sometimes the professionals in the industry know of service providers that offer better deals, or they can make a plea on your behalf. Debt can impact your mental health and your ability to thrive in life. Don’t struggle alone – keep reaching out until you find a solution.
Genuine debt solutions aren’t always easy to find. However, if you’re persistent and careful to adhere to the dos and don’ts listed above, you will get there in the end. It can be hard to believe that when you’re in the thick of things, but have faith and you will pull through.