How to Consolidate Debt in Florida

How to Consolidate Debt in Florida
How to Consolidate Debt in Florida

There are many individuals in Florida who owe money to multiple debtors- have multiple, high interest credit card debt, unpaid utilities and personal loans past due. Does this sound like you? Are you troubled everyday by creditor calls? Are your wages being garnished for unpaid loans? Are you considering how to consolidate debt in Florida?

Why Consolidate Debt?

Other than the most obvious reason- to get out of debt- to consider consolidating your debt, here are some really important life reasons to get out of debt:

  • Clean Slate: With multiple outstanding bills, you would most likely have a negative credit rating. In considering how to consolidate debt in Florida, consider that it would stop further damage to your credit rating.  By consolidating your debt you can save considerably on high interest rates and fees associated with several debts. You can also monitor your debt as it will only be in one place instead of in multiple places.
  • Get Further in Life:  As you accumulate further debt, consider how it would affect your future. With outstanding debt, your access to future credit is greatly reduced. That new house or new car is that much farther away with outstanding debt than if you had no debt and a clean credit.
  • Peace of Mind: With multiple creditors, there are also multiple creditor calls. This can disturb your peace of mind and your family life- consider consolidating your debt to stop creditor calls and reclaim your peace.

Debt Consolidation Solutions

In thinking of how to consolidate debt in Florida, consider the following solutions:

  • Unsecured Loans: There are several unsecured loans that can help you pay off your creditors and consolidate your several debts into one loan. While most unsecured loans are capped off at 25,000 you can use equity that you hold. For example, if you own your own home, you can secure a higher loan amount by obtaining home equity loans. These loans can be used to pay off your outstanding debt and pay one monthly payment to pay off your home equity loan. These loans tend to have lower interest rates than high interest credit cards or personal loans. In addition, choosing to subscribe to a fixed payment schedule on your loan can ensure that you remain dedicated to repaying your loan.
  • Debt Counseling: A viable answer to the question of how to consolidate debt in Florida is to obtain debt counseling. Debt counseling services will direct you to decrease your spending while consolidating all your debt into one monthly payment for one loan. In addition, these counseling services offer budgeting services and find low interest rates to consolidate your loans. With debt counseling and consolidation, you can rid yourself of creditor calls and prevent future debt.

Personal Impact of Debt Consolidation

Debt consolidation can have significant impact on your personal life. With debt consolidation, it is important to be serious about debt consolidation. There needs to be a personal commitment to reduce and clear debt. In considering how to consolidate debt in Florida, a twofold action plan is needed. One, debt consolidation into one, low interest loan is just the first step-regular payments to decrease debt is necessary. Secondly, you need to be committed to reduce spending and live on a budget. By doing this, you will pay down your debt while not accumulating any more debt. Over time, with spending down your debt and controlling spending you can steadily improve your credit rating.

While paying off your debt, be sure to cultivate some healthy spending habits along the way. For example, rather than buying things on credit, consider setting aside some savings in order to buy what you need. If you do subscribe to layaway plans, pick interest free plans and be sure to make monthly payments before the interest rate kicks in.  When you borrow later on, be sure to borrow only what you can pay back within your income. Also, calculate any additional fees that may be associated with your borrowing. Check by calculating all your monthly expenses in order to be sure that you can repay your debt. Discriminate between your necessary and unnecessary spending to make sure that you can afford your expenses. Lastly, set your sights far- make sure you set, for yourself, some long term goals for future. Some of these goals can include paying off all your debt, owning your own car, saving money for a down payment or saving for your child’s college tuition.

Consolidating debt has considerable advantages- it improves your credit rating, reduces your payments to one low interest loan and has the potential to eliminate your debt completely. There are also several avenues you can use to consolidate debt like unsecure loans and debt counseling. But, this requires personal commitment on your part to reduce spending and to pay down your outstanding debt.