Credit cards, student loans, mortgages, and more—the modern world runs on debt. If you’re struggling to keep up with interest payments and premiums, you’re not alone. In fact, 80% of Americans have consumer debt. But with DEXSTA’s debt consolidation options, we can help you get back in control and start saving for the future.
Is Debt Consolidation Right for You?
First things first, we want you to know that it is possible to get out of debt. Debt consolidation makes it easier to do so. How does it work? By taking out a debt consolidation loan or transferring balances to a zero-interest or low-interest credit card, you consolidate multiple debts into a single payment and, perhaps more importantly, a single interest rate.
For example, instead of making separate payments on your student loans, car payment, and credit cards, you’d make a single payment on your debt consolidation loan. It can be a convenient way to reorganize your bills and make monthly payments more manageable. If you’re looking for lower interest rates, want to free up your revolving credit (like credit cards), or make fewer monthly payments, debt consolidation could be a good option.
If you’re feeling overwhelmed by your debt, or spending more than half of your monthly income to make minimum payments, this might not be the best option for you.
The Benefits of Debt Consolidation
The benefits of debt consolidation vary, depending on the approach you take. But in general, you can look forward to lower interest rates, fixed payback periods, and fewer monthly payments.
For example, if you roll your high-interest credit card payments into one fixed-rate loan, you’ll pay less interest and pay off your debt faster. Consolidation can shrink total credit card payments by up to 30-50%, on average.
Another key benefit is that you can pay off your debt a lot quicker than if you’re making multiple payments on revolving lines of credit. Debt consolidation loans take less time to pay back because they have a fixed payback period—typically 12 to 72 months, depending on the type of loan you opt for. At DEXSTA, we have a few different options to help you pay off all your debt in as little as three years.
Things to Keep in Mind
The key to consolidating debt is lower interest rates. If your new loan has a higher rate than your existing credit cards, you’ll end up paying more in the long run. Your credit score is a key factor in deciding your new interest rate for debt consolidation. If your credit score could use a little love, you might want to work on improving it before you apply for your consolidation. Luckily, consolidation can eventually help to boost your credit score. Taking out a loan to consolidate can bump up your score because it lowers your credit utilization rate.
Debt-Free Freedom Is Possible
Becoming debt-free may not immediately solve all of your problems, but it will certainly help. To most people, paying off all their debts seems like an impossible task. Thankfully, there’s debt consolidation to the rescue. Need help? Get in touch with one of our friendly team members to discuss your financial needs.