What Does Debt Consolidation Mean?
Remember the first time you won at a board game with your siblings? The confidence you felt. This only happened because you understood the definition of the rules. Let’s learn what debt consolidation means so that you can use this understanding to win with your money.
A Simple Debt Consolidation Definition
The simplest understanding of debt consolidation is when you take multiple loans and pay them off with one larger loan. These other loans are now paid off and you don’t have to make payments on them any longer. The new single loan now has taken their place.
The monthly payments on the loans that were paid off are no longer due and now you only have to make one monthly payment for the new loan.
Read more about all the things you need to know about Debt Consolidation Loans.
What Does Debt Consolidation Mean to You?
So you find yourself in the position of having multiple debts that are worrying you. You think that maybe Debt Consolidation would be helpful but you don’t feel clear and confident yet.
In looking online you come across a lot of financial terms that feel complicated and are just technical enough to make you feel fuzzy. How can I win at my finances unless I understand?
When I speak with my clients about what Debt Consolidation means to them there is a tool you can use to keep it simple and give you the confidence to move towards the goal.
When searching for a Mortgage Broker to help with your debts, find one who has a track record of moving their clients in a positive financial direction. I move my clients from high interest debt whether mortgage, credit cards, or other loans and reorganize it into a more efficient structure.
What Debt Consolidation Always Means
The tool I use with my clients is that Debt Consolidation should be as easy as 1…2…3 and nothing more!
- Stress relief – when working towards Debt Consolidation the process should always be one that is moving you to a place of less stress as we are taking action that has achieved this for many other families.
- Payment relief – the process of consolidating your credit card debt, unsecured lines of credit, auto loans, etc. should always provide you with monthly cash flow relief. My typical client saves between $500-1500 per month by completing the Debt Consolidation process.
- A step towards your financial goals – there are times when, after considering your debts, that a Debt Consolidation is not a positive step for my client. The new loan will be just as expensive as the existing debts. If this is the case then we will not continue and I will look for other ways to help.
So we can either try to continue on the same way with our finances while our frustration grows…or we can take this definition and run with it.
I can see your inner child now. You have a confident definition of the game. You can now even explain it to your loved ones and teach them what Debt Consolidation is. Time to win…contact me today!