It is easier to run into debt during the Christmas season. According to a survey, two-thirds of people are already struggling to afford Christmas. The festive activities make people spend way more than they should and, in turn, get stuck in debt.
But you shouldn’t avoid your debt; take it full-face. The best way to deal with debt squarely is to consolidate your debt, and the best time to do that is during Christmas.
Why during Christmas?
Follow this article and find out why Christmas is the best time to consolidate your debt.
Why You Should Consolidate Your Debt During Christmas
Consolidating your debt means combining all your multiple debts with different interest rates, different payments, and different due dates into a single debt. Consolidating your debt will help you pay off your debt faster and with less interest.
It’s important to get your debt in order during Christmas before holiday shopping hits its peak and the new year dawns on you because;
- It will help you cut down on expenditures and avoid frugal spending during the festive season
- Consolidating your loan during Christmas will help focus your mind on paying off your debt. No sane person chases a rat when the house is on fire
- By consolidating your debt during Christmas, you avoid paying higher loan interest and fines in the new year
Ways to Consolidate Your Payday Loans and other debts
Add Up Your Debts
Adding up your debts will help you to know the total amount you owe. Assuming you have five different debts that consolidated to $4000, you will need to get approved for a $4000 loan consolidation to pay off your outstanding debt.
Prequalify to Get Approved
Once you prequalify for debt consolidation, you will be given the requested money to settle your debt. Prequalification helps you to know the loan amount, interest rate, and term you qualify for without damaging your credit score.
Sign Up With a Reputable Payday Loan Relief or Consolidation Firm
You’ll have to apply to banks, credit unions, or online lenders to secure a personal loan. This loan amount should be equivalent to the total debt you owe.
Get Loan
Once approved, receive the amount and pay off your debt. However, if the amount you received for loan repayment is lower than your outstanding Payday loan debt, you must pay the highest interest loans first. Doing so will escape paying the high-interest fee on that debt.
Note: You can consolidate as many of your loans as the debt consolidation loan will allow.
Use a Home Equity or 401(k)
You can also use a home equity or 401(k) loan to consolidate your payday loan. A home equity loan leverages the equity from your home as a security for getting a loan. While a 401(k) is your retirement savings account disposable for your use.
Conclusion
The best payday loan relief is to consolidate your Payday loan. By doing so, you won’t have to go spending during Christmas when you have a debt to pay.
Furthermore, when consolidating, you should carefully compare loan options from different lenders to ascertain which is the best fit for you.
