We’ve all had those moments, haven’t we? One minute you’re swiping the card with joy, paying bills, eating out, and merrying. The next minute you are trying to figure out how to pay for your transportation for the week. Perhaps your table is littered with envelopes. Each envelope, a different color, a different creditor, screaming for attention with its own set of demands, interest rates, and due dates that come around faster than the seasons change. And let’s be real, who can enjoy a peaceful evening with friends when your mind is racing with numbers and due dates? Not many of us!

However, when these debts are in multiple folds, you may want to think about debt consolidation, which isn’t a bad idea at all, but before we go into that, let’s look at how people can choose to manage their debts.

Self-Management

Taking the DIY route to manage debt is like rolling up your sleeves to start a home renovation project. Self-managing your debt will usually start with a hard look at your finances. You will list all the debts, both secured and unsecured. Then, you work out a budget so you can manage your debt and still cater to your basic needs. This might mean cutting back on many things or saying no to some luxury.

Sometimes you fail, other times you win. If it’s not something you’ve done before, you may go through lots of trial and error till you finally get a grip on your finances. Meanwhile, there’s a faster and better way to manage your finances and debts even if you have zero knowledge about it.

Seeking Help from a Debt Expert

Sometimes the DIY approach feels a bit too much to handle. That’s when turning to a debt expert can be a good decision to make. Think of them as your financial guide through the challenge of debt management. These debt experts are trained with tools and strategies you might not even know exist, from debt consolidation plans that bundle your debts into a single, manageable payment to relief programs that can reduce your debt, like consumer proposal. Lots of people don’t find it easy opening up about their finances, but the relief of having a clear plan and an experienced personnel in your corner can lift the weight of debt off your shoulders.

What is Debt Consolidation?

Instead of juggling a bunch of different debts, you can lump them all into one. One payment, one interest rate, and, most importantly, one step closer to the peace of mind you once had. Debt consolidation helps you manage your debt better, you don’t have to cram many dates or keep taps on them. Just one debt and one date.

Types of Debt You Can Consolidate

Credit Card Debt

Credit card debt is like that your friend, Andrew. He is always easy to hang out with but somehow leaves you with a hefty tab at the end of the night. Credit card debt creeps up on you like Andrew, as you innocently swipe to pay for coffee, online shopping sprees, or those times you just had to have the latest gadget. Before you know it, each card is a mini loan shark, with interest rates. Consolidating this type of debt can be a breath of fresh air, giving you a single payment that’s often at a lower interest rate.

Payday Loans

Payday loans may seem like the financial lifeline when you’re in need. You can access a payday loan fast without hassles. But that’s not all there is to it. Payday loans can make you struggle and may pull you deeper into debt. The interest rates are huge, these interests can turn what seemed like a small loan into a mountain of debt. Consolidating these loans can throw you a lifeline, pulling you onto solid ground with lower interest rates and a manageable payment plan.

Unsecured Personal Loans

Unsecured personal loans are those chameleon debts, you take them out with the best intentions, whether it’s for consolidating other debts, financing a dream project, or covering unexpected expenses. But without collateral, these loans can also come with high-interest rates, making them a slippery slope if not managed carefully. But when you consolidate them, you can get a grip.

Medical Bills

Consolidating medical bills can be a game-changer, especially when you’re already juggling other debts. It simplifies your payments, and reduces stress, then you can focus on what’s most important – your health and well-being, without the added weight of financial worry hanging over your recovery.

Can You Consolidate Secured Debt?

Secured debts are the type of debt anchored to assets like your home or car. While consolidating these kind of debts isn’t an everyday procedure, it’s not entirely off the table. Some might consider leveraging their home equity to roll high-interest debts into a more manageable single loan. However, the key here is caution and clarity. You need to understand the implications and ensure that this move doesn’t just shuffle your debts around but truly lightens your financial load.

Stay Debt-Free

Once you’ve consolidated your debt, it’s about staying on track. Debt consolidation isn’t just about tidying up your finances; it’s about giving you the breathing room to enjoy the things that matter most.

What if you don’t have to pay your debt in full? What if you can reduce your debt by up to 80%, and interests stop immediately? You can speak with one of our debt experts at EmpireOne Credit. We offer a friendly and confidential consultation. You can call us at (416) 900-2324 to schedule a free consultation with us. Being debt-free feels good!