As a population a fairly congruent factor is that we all share some level of personal debt. Whether you’re a mortgagee, you’ve borrowed to start a business or birthdays have caught you unawares and you’ve turned to your credit card to see you through.
Consider your debt like a shadowy figure following you around with some unannounced malicious intent. You’re not entirely sure when you’ll get rid of this apparition, all you know is that you want it gone as soon as possible.
Taking back control
It’s easy to feel like everything is spiralling out of control and that you’re only just treading water. This feeling isn’t a fair reward for a hard weeks’ worth of work and if you’re like most people you’re eager to feel like you’re making some headway again.
A large factor in taking control of your debt position is everyone’s favourite word “sacrifice”. While we all deserve creature comforts, in lieu of feeling the pinch, it may be time to say goodbye to a few unnecessary spending habits. Unfortunately, without more income available it will be difficult to say goodbye to your debt.
Another important part is deciding on whether consolidating your debt is the right solution for you. If you have quite a few independent debts like a credit card, personal loan and a car loan with their own independent interest rates, it could be worthwhile consolidating them under one loan structure with a more manageable interest rate.
Blood, sweat and interest…
In a perfect world we would only have to pay back what we had originally borrowed. The reality is that if we choose to borrow money, we are going to pay interest on top of what we’ve borrowed.
A little research can be your best friend in this circumstance because while on the outside it may seem like you have a favourable interest rate, chances are there is a competitor that is willing to do better than what you have right now for the chance of having you as a customer.
In this ideal, think in the longer term. There is nothing more uncomfortable than switching lenders and in the near future finding that your newer loan structure has been invalidated due to circumstantial changes!
Understanding is your greatest weapon
Understanding what your debt solutions are is the most important part of taking control. Knowing what you are able to do is the greatest benefit because you will be equipped to ask plenty of questions and you’ll understand the results you’re achieving.
If you’re feeling like your debt is getting out of control and you’d like to know more about what you can do to get your loans in check, the Zenon Group on the Gold Coast provides a cost free assessment services that allows hard working folks to understand more about their debt position and what their potential solutions are.