We all have a bucket list of destinations to visit but as you know, traveling around the world comes with huge expenses. It even gets worse traveling while thinking about your debts. When it comes to traveling, I usually have a few words of advice.
“Travel passionately, experience more but spend wisely.”
If you are traveling, then it means you don’t mind spending on things that make you happy in life. We can never ignore the topic of debt when traveling as debts will always spoil the travel experience. You can never travel the world when you’re worried about your finances. This is why it is crucial to consolidate your debts and manage your money better.
So what is debt consolidation?
Debt consolidation is a type of unsecured loan that replaces all your existing loans. It simply means bringing all your loans together so that you can have a single loan with a single interest rate. This helps you to simplify payments, reduce monthly costs and avoid higher interest rates.
If you love going on vacation but can’t manage to do it because of the many loans stressing you up, then this is a must-read article.
There are several debt consolidating firms out there that have helped millions of Americans become debt free. Reviews of Freedom Debt Relief show over $8 billion in debt of various clients resolved in the past 15 years alone.
It is important to note that debt consolidation does not mean that your debts will reduce. However, a huge responsibility would have been taken off your shoulders. You will not be dealing with one loan and a single interest rate.
Main advantages of debt consolidation
So, what are the main benefits when you consolidate your loan?
Lower Interest Rates
Consolidating your loan means you will no longer have to worry about multiple rates. A single rate usually prevails for all loans that have been consolidated. This is a great benefit in helping you save more money that would have been paid as interest.
Adjusted Due Date
Your loans usually have different due dates. You’ve probably had a problem not knowing which loan is almost due. When you consolidate, all loans will have a single maturity date. This will help you plan out your finances better and know when the loans will be fully paid.
Easier monthly payments
Your monthly payments will be a lot easier since you will only be paying for one loan. This is a huge relief considering you had to make several small different loans when your loan was not consolidated. You will also not worry about missing certain loans since you’re making a single monthly installment.
It is stressing when you have to pay three loans every month. However, with a single loan on your mind, you will be stress-free and can easily travel the world without thoughts of debts. Debt is listed as one of the main stress causing factors in the United States. You obviously know the health side effects that come with stress.
A debt consolidation loan helps you focus on important things in life and stop worrying about the many loans. You only have one loan with a single monthly installment and interest rate to think about.
Avoiding penalties and fees
There are high chances of fees and penalties due to missed monthly installments. This usually results in higher payments by the time all your loans are cleared. However, it is quite difficult for you to miss monthly payments when you only have a single monthly installment to pay.
Stopping collections calls
You know the calls that come whenever your due date is close or when you’ve missed a payment. Creditor companies usually turn to collection agencies to help them call individuals that are late on their payment. We all know how stressful and annoying these calls can get. Debt consolidation helps you stop all these calls and deal with a single loan.
Credit score improvement
There are high chances you can improve your credit score when you have a single loan to pay as compared to several loans. Constant late payments on different loans negatively affect your credit score rating. However, if you can pay all these loans and stay on top of the payment on the consolidated loan, then your credit score will improve.
Money and travel matter a lot, and if you can manage your debts, you can manage your money. This will, in turn, give you the freedom you always wanted to travel the world stress-free.