Although the U.S. economy is beginning to show signs of improvement, many Pennsylvania families find themselves buried beneath a load of debt. The state has lost more than 100,000 manufacturing jobs during the past few years and has one of the highest levels of credit card debt in the nation at more than $33 billion. It’s no wonder that so many residents throughout the state of Pennsylvania are struggling financially. If this is the situation you find yourself in, understanding these 10 ways to save money with a Pennsylvania debt consolidation company will be very beneficial.
1. Get Free Advice from a Professional Credit Counselor
In the process of obtaining a debt consolidation loan, you can receive free advice from a professional credit counselor. The counselor will go over your debts with you to help you determine the best approach to solving your credit problems. There is no need to feel embarrassed by your present financial situation or the amount of debt you are carrying. A seasoned credit counselor has seen individuals from all walks of life and will know the best options to help you be successful in becoming debt-free.
2. Establish a Workable Monthly Budget
One of the best ways to save money is to establish a monthly budget that you can live within. This will be much easier to accomplish once you consolidate your debts as mentioned above. A budget will allow you to plan your expenditures in advance. Preparing a budget will help you see your forecasted expenses so you will not be caught off guard by unexpected events. This way, you will be able to pay your bills on time and make proper choices when it comes to how you spend your money.
3. Lower Your Monthly Payments
If you are making several large payments each month, you may be able to significantly lower your monthly payments with a Pennsylvania debt consolidation loan. A consolidation loan often has a lower monthly payment because it is based on one larger loan rather than several smaller ones. Currently, each of your loans have minimum amounts that you have to pay each month. However, if you consolidate your debts, you will only have one minimum monthly payment to manage.
4. Manage Only One Monthly Payment
In addition to the benefit of lowering your payments, you will only have one monthly payment to make each month. This will make it easier for you to remember the due date and make your payments on time. Having only one monthly payment to manage will also help you stay organized, better manage your finances and avoid late fees.
5. Pay a Fixed Interest Rate
Many credit cards have variable interest rates. If you have been late on your payments, you may have noticed a significant increase in the interest rate that you are paying. With a consolidation loan, though, you will pay a fixed interest rate. In addition to knowing what payment you’ll be making each month, you should also be able to save a significant amount of money.
6. Obtain a Lower Interest Rate
With a consolidation loan, you may be able to obtain a lower interest rate. If you have multiple debts, including credit cards, chances are that you are paying hundreds or even thousands of dollars in interest each year. By working with a debt management company to help you obtain a lower interest rate, more of your payment will go toward the principal rather than to interest. This will save you a significant amount of money over time.
7. Pay off Credit Cards
If you are struggling to make your monthly payments on time, you are most likely only paying the minimum amounts on your credit cards. If that is the case, almost all of the money you are paying is going to interest, and the credit card balances are barely being reduced. If you purchase anything using your credit cards while you are making minimum payments, your credit card balances will actually increase. When you obtain a Pennsylvania debt consolidation loan, though, your lender will immediately pay off your other debts, and you will be left with only one loan to repay.
8. Pay off All Debts Sooner
Once you have obtained a lower interest rate as well as a lower monthly payment, you will be able to pay off all your debts much sooner. This will put you in a better position to save money for necessary purchases. Once you’ve begun to pay off your debts, you will benefit from working with a debt counselor to help you invest in your financial future.
9. Eliminate Late-Payment Fees
Having only one payment to make each month will ease the burden of making your payments on time. Among other benefits, this will eliminate late-payment fees, which can save you hundreds of dollars per year.
10. Improve Your Credit Score
In addition to eliminating late-payment fees, you will also be able to improve your credit score since you are making your payments on time. This could be a significant benefit to you in the future. As your creditworthiness improves, you will be able to obtain credit at an even lower interest rate, thereby saving you additional money. If you want to purchase a home or take out a home equity loan in the future, you should be able to obtain a more favorable rate.
Start Saving Today with Pennsylvania Debt Consolidation
Don’t allow a consumer debt bubble in Pennsylvania to affect your future. If you’re struggling with unsecured debts like credit card bills and business loans, you should seek help from a trustworthy Pennsylvania debt consolidation company such as Christian Debt Counselors. Our trusted debt counselors are ready to work alongside you to help you regain your financial freedom.
If you’re struggling to make your monthly payments, these 10 ways to save money with a Pennsylvania debt consolidation company will help you take control once again.