Social Security and Debt Consolidation: What You Should Know
If you’re living on Social Security payments, then you’re familiar with being careful with your money every month. Unfortunately, saving a few dollars at the grocery store doesn’t make a lot of difference when you owe thousands of dollars for a car repair, home repair, or medical expenses. When large bills like this come up, many people start thinking about a debt consolidation loan to reduce the amount that they have to pay and/or free up cash to pay for those other bills.
A debt consolidation loan can be a good option for many people in the situation of owing more than they can reasonably afford to pay back while living off of their Social Security check. When an unexpected expense comes up, Social Security simply doesn’t pay enough to allow you to get it paid off quickly. Often, this results in people putting these expenses on credit cards or paying for them with personal loans. While these loans can make payments manageable, they’re also next to impossible to get completely paid off. That means a one-time expense and become a recurring bill that lasts for years.
Debt consolidation eliminates this problem by paying off all of your existing debts and replacing it with a single loan. Since every debt consolidation loan has to be approved by a professional debt counselor, you’ll know that you’ll get a payment that you can afford. These loans have a lower interest rate than most credit cards, and payments can be stretched out over a longer time if necessary, making it possible for you to pay less than half of what you’re paying now on your debt.
Debt consolidation loans are one of the few types of credit that is regularly extended to people on Social Security. That means that if you have been denied for other credit cards or refinancing, you can still qualify for a debt consolidation loan. Each loan is individually reviewed and processed by an actual human being who you can talk to. You will not be denied simply because your only form of income is Social Security. Taking out the loan will not affect your eligibility for benefits.
<p data-sp-element=”content”>Debt consolidation loans will give you a payment that you can afford every month. Unlike credit cards, your payment remains the same every month. While you can pay extra on the loan to get it paid off faster, it’s also possible to just make your regular payment every month until the debt is completely paid off.