We all accept that for certain things we want or need in life, we’ll need a little help. Buying a home, a car, or maybe even a renovation or a holiday. And for most of us, we chip away at these debts, and with regular repayments, we repay them in full.
However, it’s worth sparing a thought to what would happen if you weren’t able to repay your debt. Life’s unpredictability is always ready, armed with a spanner to throw into the works – a lost job, an illness or death, an unexpected expense.
When this happens, our debt can quickly get out of hand without the proper financial knowledge to be able to adjust. You may not even realise your debt is becoming a problem. For example, here are a couple of tell-tale signs you may need to re-think your debt-management.
- Your credit cards are maxed out, and you use them more than your own money
- You spend more on your credit card than you repay
- You’re unable to keep tabs on your credit card spending
- You don’t have a budget in place
- You don’t have a back-up or emergency savings fund
- You struggle to meet your minimum required payments on your debts
If you answered yes to any of these questions, it might be time for you to think seriously about your debt situation. It might sound simplistic and a bit harsh, but in order to bring your debt back down to earth, you need to spend less than you earn and use the remainder to repay what you owe.
To get you started on the road to debt consolidation, you should develop a total picture of your debt situation, including:
- The total you owe on each debt, and your overall debt total,
- The interest amount you’re regularly paying on each debt,
- The term of each debt, or how long you have to pay each off, and
- The fees and charges involved for each debt
Your next steps…
If you currently have multiple debts from various different credit providers, the most common way to bring them under control is with a debt consolidation loan. Bringing all debts under one loan will give you peace of mind, knowing that you’re now paying one manageable interest rate, without having to pay multiple sets of fees and charges.
At The Greater, we’ve established a reputation as experts when it comes to Personal Finance, and our responsible lending practices ensure that we’ll do our best to examine your circumstances, and come up with a debt consolidation plan that’s right for you.