When was the last time you experienced financial freedom? In this day and age, more and more people have to take loans in order to make ends meet. However, debt grows quickly. Most people don’t realise how much debt they chalk up until it’s too late. Obviously, lending firms, credit institutions and banks generally give loans on an interest basis. The interest continues to compound with the passage of time, and it doesn’t take long for a small principal amount to multiply into a hefty amount.
Companies such as Free from Debt have become very popular in Australia. The company hires a number of debt negotiators who will work on your behalf to come up with a plan to repay your debt. If you want to break from the shackles of financial debt and wish to live a free life, here is a brief guide to help you out:
Consolidation Loans
How many loan payments do you make on a monthly basis? Making many payments in a month can make it difficult for you to ever get on top of your loans. Did you know that the monthly payments you make comprise most of the interest, and a very small percentage of the payment actually contributes to the principal amount? If you hire a debt negotiator to help you out, they will first talk to all the creditors and freeze the interest charged on your loans. Once the interest is frozen, they will try to get you a debt consolidation loan.
With the help of a debt consolidation loan, you will be able to pay off all your existing loans. In the end, you will end up with one big loan which has a relaxed payment plan. Consolidation loans are designed for people who want to get rid of all the monthly payments and just stick to a single loan instalment. Different lendershave different terms and conditions, so you can get rid of all the loan payments and just focus on repaying a single loan.
Debt Management
Managing your debt is essential. If you hire a debt negotiator, they will create a list of all your outstanding debts and help you prioritise the ones that need to be paid first. Due to the financial pressure, most people often fail to manage their debts carefully. By hiring an experienced debt negotiator, you will be able to figure out which of your outstanding debts has the highest rate of interest, as well as other important information.
Possible Solutions
Should you file bankruptcy or should you try to pay off your loans one step at a time? When you sit down with a debt negotiator, they will discuss all of these different options with you and help you decide the best possible solution. Repairing your credit score might take a while, especially if you are steeped heavily in debt. However, with the help of an expert, you will be able to make decent progress.