Why Consolidate Debts from your Holiday?
The holidays can bring so much joy and happiness but financially can be very destructive. Every year in December, credit card spending spins out of control and people try to justify their spending with the joy received from giving gifts. They don’t look at how after the New Year they will be swimming in debt filled with high interest rates.
While we are still in the early stage of the Christmas Holiday and New Year, start claiming your finances back from the debt scrooge. One option to consider is to consolidate debts from your holiday through a debt consolidation loan – which will combine all of your debt into one easy repayment per week, fortnight or month. If you consolidate debts that you have into one easy loan, your repayments can decrease from a lower overall interest rate. With the decreased payments and interest rates, you will be able to save money that can be put towards next year’s Christmas.
The reason to consolidate debts includes saving money, reducing repayment periods and saving time. You are able to save money from the reduction of the amount of interest you pay. NSW Mortgage Corp can currently access rates as low as 6.58%, whereas the interest rates on credit cards are typically around 18%. With the additional funds being freed up from the decreased interest rates, you can pay your loan fast by increasing your payments. Increasing a monthly payment by $100 can take off multiple years on your loan.
Staying Out of Debt
Once you have enlisted NSW Mortgage Corp in the first steps of managing your debt, the next stage is up to you. To stay out of debt, you must make a lifestyle change for the best. You may have to remove some things from your life – but think of it as breaking a bad habit. You want to ensure once the debt is gone from your life, you never revisit it again.
Start by looking at all your monthly expenses and label them a ‘necessity’ or a ‘want’. This will assist you in seeing how much you spend each month and what you can cut out of your life. It could be cutting back on eating out or on shopping sprees – whatever it is, cutting back will help you increase the amount that is in your bank account at the end of the month. The next step is to get rid of your credit cards completely. You do not want to have the temptation constantly available, that may allow you to slip and increase your debt again. By following a strict spending plan, you will teach yourself how to live happily and comfortably within your means instead of drowning in debt.
If you need assistance to consolidate debts or want to talk about your current financial assistance call a debt consultant as NSW Mortgage Corp today on 1300 137 778.