Avoid the New Year Hangover With a Debt Consolidation Loan

Hungover man sitting with a coffee after New Years celebration
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 we were ever so lucky, you may have been preparing ourselves 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 to 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 many of us consider the option of a debt consolidation loan as early as possible. Acting as soon as possible can help provide a better start for the New Year, and help keep us in control of our spending.

What is Debt Consolidation?

First things first, a debt consolidation loan is a single loan that helps roll all our existing debt into one secure manageable payment. Consolidation loans tend to be simplified loans with competitive interest rates and lower monthly payments. Giving us the breathing space so that we can better manage our debt. Having multiple payments at different times can make it difficult for anyone to reduce their debt as missing one payment could set us back even further. Consolidating our debts into one more manageable payment could help keep those high-interest loans off our back while at the same time, allow us to get back on top of managing our finances. So that’s pretty much a debt consolidation loan, it helps us get our debt in order so we 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. Our best bet is to pay a week or two of these debts, and see if our payments are manageable. If not, then maybe it’s best we consider applying for a debt consolidation loan with our 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’s 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. We use the whole, “New Year new me…” stuff and tell ourselves that 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 our holiday

Another significant benefit of considering a debt consolidation loan before the holiday season is the stress relief it can grant us. Being able to keep in the back of our head, the exact amount we have to pay each week and the exact time period we will be doing it in, means we don’t have to second guess our purchases or worry about the bill coming next month. We can actually enjoy ourselves over the holiday season and do the things we 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 we end up back work with our emails inbox full of missed payments or bill statements. We should stop that dreaded New Year hangover from happening and take charge of our debt before it happens. Consult your local credit union and see if debt consolidation would be the right thing for you.