We all have debts. Whether it’s a mortgage, a bank loan or an overdraft, they can quickly stack up. So maybe it’s time to consider how you can consolidate your debt into one payment. Here are three signs that it’s time to consolidate your debts.
- You are struggling to keep up
Maybe you’re already very organised with your money, and know exactly where your money is going, when it is due and what the minimum payments are. That’s great. It’s an excellent start to be organised with your debt repayment. But it’s still easy for something unexpected to tip the balance. It could be that you’re struggling simply due to clashing dates, varied pay days or unexpected bills. If you feel like you’re struggling to keep up with your payments simply because they occur on different dates for vastly different amounts and don’t seem to synch up with pay day, it might be time to consolidate. [NAME] from The Debt Line said, “Consolidating is not the only option, but it is often the most straight-forward and most successful when it comes to getting back on track with debt repayments.” This is because it reduces the stress that can come with conflicting dates and varied payment schemes by putting all of your repayments in one place, on one date per month, depending on the scheme you choose.
- You have debts across three or more separate payments
It’s simple. The more debt repayments you have coming out, the more difficult it can be to keep track and avoid missing payments. If all you’re repaying is your mortgage, for example, there probably isn’t a real need to seek out advice on better ways to repay. But if you have a loan on top of your mortgage repayments, credit cards and perhaps an overdraft, it’s probably the wiser choice to look to moving all your debt to one place. The standard rule of thumb would be to consider consolidating if you have three or more debt repayments to manage across different platforms. The sooner you decide to lump your debts together in one place, the better the head-start you have for any unexpected costs that may occur in everyday life.
- You’re feeling overwhelmed and are worried about missing payments
If debts have gotten on top of you to the point where you feel anxious about missing payments, and the consequences that may follow, it is time to seek expert help. Consolidating may be the best option for you, as it will enable to see all of your repayments in one place and allow you to repay in a more manageable and affordable way. At the same time, consolidating your debts will mean speaking to expert debt advisers. Simply having an expert there to help you and to give you the best options available depending on your circumstances could be a lifeline and could help you to stop feeling anxious or overwhelmed about your debts. So, if you are concerned, this is a clear sign that it may be time to consider consolidating.