Are you ready for debt consolidation?
It’s time to assess your situation – your financial situation. You may know that the bills are piling up, credit card interest rates are too much to handle, and the required minimum payments (if you can even make ends meet for minimum payments) are not enough to tame the amount you owe.
You have heard of credit card debt consolidation and how it may be able to get your financial issues in order, perhaps leading to an improved credit score and being able to purchase all those big ticket items you have been putting off – a car? a house?
It’s time to come home to the idea of credit card consolidation, but first Are You Ready?
Important information you will need
To begin to assess your situation, first address your behavior and your thinking around money and financial issues.
Personally, how do you handle your finances, and more to the point, your debt? Are you mindful of your spending? Has a single unexpected expense (a new baby, a health emergency, or a death in the family?) caused your credit card debt to spiral out of control? It is critical to understand factors that are within your control and aspects of financial life that you cannot control but you can do your best to be prepared for. Remember the old adage ‘Hope for the best, Prepare for the worst’.
Keep in mind that You will still be You after credit card debt consolidation. It is best to reflect on your behavior and mindset now so you can find ways and strategize to correct bad habits, whether they be in spending, lack of saving, monitoring credit card statements, paying down debts, or other actions that reflect on your credit score and financial situation generally.
If you suspect avoidance behavior in yourself, it is best to address it now. Now is the time to take charge of your life.
Next, what are the facts of your situation?
- How much credit card debt do you have?
- What is your combined credit card and student loan debt? What other debts factor in?
- How long have you been in debt?
- How long will it take you to pay off your debt by just making the minimum payment?
- What is the age of your debt? How long have you had credit history?
- How long have payments been overdue? If you are too afraid to even find out, address this issue now!
Preparing for credit card debt consolidation
Remember that other factors may be at play in your life while you consider and explore credit card debt consolidation. Marital or social stress could affect your approach to the situation, and it is important that you discuss your financial situation and the decisions to be made with your spouse or other legally bounds parties.
As you prepare for debt consolidation, you may consider collecting information in a folder or file on your computer that you can use to hold weekly check-ups with yourself or your loved ones to review the process and take the steps necessary to move forward.