Can I use Debt Consolidation if I don’t have any money for Debt Repayment?
<p data-sp-element=”content”>When you’re struggling to pay your bills every month, you prioritize where your money goes. You have to pay things such as your car payment, rent, and the electric bill. You cut back as much as you can on groceries and water. Sometimes, you just done have anything left over for credit card debts. While people in this situation need help, they often wonder if applying for a debt consolidation loan would be a good use of their time.Because debt consolidation requires each borrower to work with a debt counselor, it’s possible that you’ll qualify for a loan even if you have no idea where the money would come from in your budget. During counseling, your budget will be reviewed for any areas where the debt counselor can save you money. He or she can also make suggestions to increase your income.In almost every situation, a debt counselor is able to find some amount of money that can be used for debt repayment. Even a couple of dollars can be enough in some cases to qualify for a loan. Debt consolidation pays off all of your existing debts and replaces them with a single loan with a lower payment. That payment is partially based on how much you can pay. If you have only a few dollars, it is possible to find a loan with a very low payment and a long payment term.More commonly, borrowers have a small amount of money that they use to pay off their debt, but it isn’t enough to cover everything. Rather than prioritizing what needs to paid, a debt consolidation loan can knock down your total payment to an amount you can afford. That means you’ll be paying money towards the principal of the debt every month, not late fees and penalty interest rates. You’ll actually make progress on your debt instead of wasting time and money making payments that seem to go nowhere.While a debt counselor may suggest you make cuts to other bills, more often he or she is able to include loans that you didn’t consider when you were trying to determine how much you had to spend on debt repayment. For example, it might be possible to include your car loan in the debt consolidation. This can free up all of the money you’re spending on your car to go towards paying off your car and your other debts. Talk to your debt counselor and see what they can do for you.