Debt Consolidation Hints & Tips
There are things you can do to stay in control of your finances once you have a debt consolidation loan in place.
You’ve come this far and have organize your finances, now you just need to stay motivated and set up a plan that works for you.
Debt consolidation tips
Here are some helpful tips you can use to make sure that you’re always one step ahead of your finances.
1. Use a budget
If you don’t already have a budget in place then now is the best time to get started. It will give you control of your whole financial situation so that you can make smart decisions and use any extra money wisely.
If you already have a budget, you’re going to have to take another look at it and add the repayments into the monthly figures. Make sure that this budget is kept in a place where you can see it easily so that you stay on track and don’t overspend on things you don’t really want or need.
2. Make extra payments
You can save a lot of money on interest and pay off your debt sooner by making extra payments every month. You need to make sure that the debt consolidation loan you have will not charge you any extra fees for making these extra repayments.
Every time you have a little extra cash, put it towards paying off your loan. You’ll be surprised to see how fast the small amounts will add up to large amounts being taken off your loan.
3. Look for alternatives
You can shave a lot of money off your monthly budget by looking for low-cost alternatives to your current entertainment expenses. Instead of going out to a restaurant twice a month, you can consider having a picnic instead or even just switching restaurants to one that will cost less. All of these changes will add up to big savings over time and you will see the results quickly.
4. Put your credit card away
Hide your credit card and don’t use it for anything. You don’t need to cancel the account entirely, since you may need the card for an emergency, but you definitely do not want to use it to make regular purchases. You can stay in better control of your debts by eliminating any credit card balances.
Using cash makes you think twice about making a purchase. It is actual physical money that is leaving your hands and it is harder to part with than the concept of money that is on your credit card. Start using cash or at least your debit card, to make any future purchases.
5. Use your savings account
Take a look at the savings account you currently have and find out what interest rate it is paying out. Start shopping for high interest rate savings accounts to see if you can find a better deal.
If you are paying more interest for your debts than the earnings you’re making on your savings after tax, it would be a good idea to take some of your savings and put it towards your debt. Paying down your debt consolidation loan should be your top priority when it comes to your current finances.
Some people make the mistake of thinking that setting up a debt consolidation loan is all it takes to get their finances on track. Indeed, this is the first step, but these other things need to be put firmly in place to make sure that the loan gets paid off and you don’t get into any further debt along the way.
Featured Personal Loans
| Personal Loan | Details | Min Interest Rate | Min Comparison Rate | Min Loan Amount | Min Loan Terms | Apply Fee | |
|---|---|---|---|---|---|---|---|
 ME Bank Personal Loan | A low rate personal loan from ME Bank with no application fee for a limited time. | 13.59% | 13.81% | $5000 | 1 year | $0 |   |
 Aussie Personal Loan | A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house. | 13.90% | 14.84% | $3000 | 1 year | $199 | |
 Sugar Money Personal Loan | Fixed rate personal loan with flexible options to get you funds when you need it. | 13.99% | 15.00% | $3000 | 2 years | $250 | |
 bankmecu Personal Loan | A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees. | 13.49% | 14.55% | $1000 | 1 year | $150 | |
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