Can debt consolidation help with late payments?
Even if you have a good income, you know that it’s difficult to keep track of everything that you have to pay each month. Often, a bill simply gets forgotten until it’s well past the due date. That means you get slapped with extra interest, a high late fee, and a negative mark on your credit report. A single missed payment can result in you paying hundreds of dollars more in higher interest charges and other fees.
Fortunately, there is a way to avoid these charges in the future without resorting to a complicated bill tracking system or allowing the companies you owe money to to scoop up whatever they want out of your checking account. A debt consolidation loan can combine your existing loan payments together into one bill, making it much easier to keep track of everything. Furthermore, after several months of on time payments, you’ll likely see an improvement in your credit score.
A debt consolidation loan is a single loan that pays off all of your other debts. If you frequently find yourself trying to keep track of dozens of credit cards, personal loans, student loans, and other debts every month, imagine erasing everything and only needing to keep track of a single bill. Furthermore, you’ll be able to choose the terms of the loan. If you need to free up extra cash each month, you can pick a loan with a low monthly payment. If you just want to get out of debt as quickly as possible, you’ll be able to pick a loan that has a very short payment term.
No matter which loan you pick, you’ll now that you’ll be able to make the payments because you’ll work with a debt counselor to find a loan that fits in your budget. This debt counselor will also be able to adjust the terms of the loan so that you pay on the day that you want. When you have the same date to remember each month, you have a much better chance of remembering to make the payment.
Most importantly, your debt consolidation loan will have the same payment every month. That means you’ll always know how much to budget for your debt no matter what comes up.