Avoid the New Year Hangover With a Debt Consolidation Loan
Christmas presents, New Year accommodation, travel expenses and slush funds. It’s these expenses that we are preparing for as the joyous holiday season fast approaches. If you were ever so lucky, you may have been preparing yourself throughout the year to be able to deal with these costs. But not all of us were able to do so. With all these cost burdens falling at once, we tend to reach out to our credit cards and debit cards, to guide us and secure our plans for the holiday season. This reaction is a fair one, as we do so knowing that we will be able to pay off the debt when we start back up at work, in the following year. But it’s this exact thought that could end up costing us in the end. Having multiple credit cards maxed out and debt from various sources, we fall victim to the dreaded end of the month interest rate. Our debt gets the better of us from the delay of payment or lack of income we received over the break, and we end paying an amount, far greater than we thought it would be. This is why we need to consider the option of a debt consolidation loan as early as possible, as acting now could help provide a better start, for the New Year and help keep you in control of your spending.
What is Debt Consolidation?
First things first, a debt consolidation loan is a single loan that helps roll all your existing debt into one secure manageable payment. Consolidation loans tend to be simplified loans with lower interest rates and lower monthly payments that give you breathing space so that you can better manage and begin reducing your debt. Having multiple payments at different times can make it difficult for anyone to reduce their debt as missing one payment could set you back even further. Consolidating your debts into one more manageable payment could help keep those high-interest loans off your back while at the same time, allow you to get back on top of managing your finances.
So that’s pretty much a debt consolidation loan, it helps you get your debt in order so you can avoid large amounts of interest at the end of each month. It’s a simple and handy tool, but for some reason, we decide only to get a debt consolidation loan when we are in trouble after the New Year. By that point, we will have already been hit by the burden of our holiday expenses. This is why we should consider organising one sooner rather than later, as there are numerous reasons for doing so.
The silly season is where we max out our cards
As we have said a couple of times already, the silly season is full of expenses. If we don’t have the money, we may feel the pressure of buying gifts or have the fear of missing out as everyone we know is going on holiday together for New Year’s. We reach for our cards and pile up debt that acquires large amounts of interest. Your best bet is to pay a week or two of those debts, which will slightly boost your credit score. Then apply for a debt consolidation loan with your local credit union so that we can manage easier lower interest payments over the silly season.
New Year’s means new interest
The fact that it is a new year also means that it’s a new month and a new monthly bill to be sent your way as interest gets piled on to your debt and you have something else to worry about. It can be easy to think that we will just pay it off when we are ready and that whole, “new year new me…” stuff we tell ourselves as we say we will sort out our life once we get back from holiday. But if we take the initiative and prevent large amounts from occurring in the first place, then we would find our new year will start out a whole lot easier.
Relieve the stress, plan your holiday
Another significant benefit of considering a debt consolidation loan before the holiday season is the stress relief it grants you. Being able to keep in the back of your head, the exact amount you have to pay each week and the exact time period you will be doing it in. Means you don’t have to worry about the bill coming next month, or you don’t have to second guess every purchase you make. You can actually enjoy yourself over the holiday season and do the things you want to do.
Avoid that New Year hangover
So overall, these reasons all relate to the common problem we face at the start of the New Year. No one likes the feeling when the partying is done and dusted, and you end up back work with your emails inbox full of missed payments or bill statements. Stop that dreaded New Year hangover from happening and take charge of your debt before it happens. Consult your local credit union and see if debt consolidation would be the right thing for you.