At some point in your life, there’s a good chance you’ll find yourself with more debt than you’re comfortable carrying. Maybe that time is now. Maybe that time was in your past. Or perhaps it could happen to you in the future.
If you’re drowning in debt and unsure of what to do next, it never hurts to consult with a professional.
For example, Gulf Street Advisors has been providing debt consolidation solutions to consumers for more than a decade.
As you learn more about debt, consolidation, and related details, you’ll come to realize that there are a variety of steps you can take to improve your financial circumstances.
What Does Debt Mean?
While there are many different ways to define debt, Investopedia puts it best by saying:
Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.
In other words, you want to avoid debt at all costs. Doing so will allow you to live a much more comfortable life.
How Much Debt Does the Average American Have?
You don’t want to concern yourself too much with others, but it’s nice to know that you’re not the only person struggling with debt.
According to CNBC, the average American has $90,460 in debt. This includes everything from credit cards to personal loans to a mortgage.
Regardless of how much debt you have, there’s probably a question on your mind: what’s the best debt consolidation strategy?
This varies from one person to the next, so you need to answer this question based on your level of debt, income, expenses, and short and long-term financial goals.
How to Pay Off Credit Card Debt?
Do you have credit card debt? Are you beginning to realize that paying the minimum each month is getting you nowhere in a hurry? Are you wondering how to consolidate debt with bad credit?
There are many ways to pay off credit card debt, starting with the obvious: pay as much on your balance every month as you can. Doing this will keep you moving in the right direction.
The problem with this approach is that you may have credit card debt spread across many accounts. In that case, consider other options, such as consolidating the debt (more on this in the next section).
How to Consolidate Credit Card Debt
There are several ways to consolidate credit card debt, with two options standing out from the crowd:
- Balance transfer credit card
- Debt consolidation loan
With a balance transfer credit card, you’re able to put all your balances into one account. This leaves you with a single payment and only one finance charge.
Even better is the fact that most balance transfer credit cards have a zero percent introductory rate for 12 to 24 months.
A debt consolidation loan works in the same way, with two primary differences:
- It’s a loan, not a credit card, so there’s no fear of using the card as you pay it down
- You can consolidate many types of debt within the account
Is Debt Consolidation a Good Idea?
Before you learn how to get a debt consolidation loan, you must first determine if this is a good idea.
If nothing else has worked for you, this is the next logical step in the process. Yes, it’s a big step, but it’s also one that can bring some stability to your finances.
If you’re concerned about answering this question on your own, learn more about Gulf Street Advisors debt consolidation services. Doing so puts you in contact with a financial professional who can answer your questions and provide guidance.
Does Debt Consolidation Hurt Your Credit?
In the short-term, yes, debt consolidation can harm your credit. However, the goal of consolidation is to eventually improve your financial circumstances, which will result in an increased credit score.
For example, if you opt to use a balance transfer credit card, your score can dip because of high credit utilization.
What is a Debt Consolidation Loan?
Now that you know that debt consolidation works, it’s time to learn more about securing a loan.
Here are some things you need to know about using a debt consolidation loan:
- It’s an unsecured loan (no collateral required)
- There’s a fixed interest rate
- There’s a predetermined period
As an installment loan, you’ll know exactly how much you have to pay each month. And as long as you do that, you’re inching closer to eliminating all your debt.
The Importance of Debt Consolidation
You don’t have to consolidate your debts, but there are some reasons to at least consider doing so:
- It’s easier to manage one balance
- It’s more cost-effective, as you’re left with one interest rate
- You only have to make one payment each month, which saves you time
- It can boost your credit score in the long run
Who are the Gulf Street Advisors?
Gulf Street Advisors has been in the debt consolidation industry for more than 10 years.
They specialize in helping consumers consolidate unsecured credit card debt. Furthermore, they’re skilled and knowledgeable in all areas of consolidation, allowing them to provide customers with professional guidance.
You can learn more about the service by reading Gulf Street Advisors reviews online.
Apply With Gulf Street Advisors Today
When you apply with Gulf Street Advisors, it won’t be long before you have a plan in place that you can trust. And from there, there’s light at the end of the tunnel!