This is a sponsored post. All opinions about the warning signs that debt consolidation could help you are 100% my own.
It seems to be a step backward, doesn’t it? That is, going into more debt because you are already in debt. But used correctly, a debt consolidation loan could help to give you a little breathing room and allow you to come to terms with your debt load.
But when do you know to start looking at a consolidation loan as a financial tool? Let’s look at some warning signs that you may be ready for a loan.
Warning Signs That Debt Consolidation Could Help with Wink Capital
You Find It Difficult to Meet Your Monthly Payments
If you are having problems with making ends meet, you may need a financial lifeline before you go under completely. Now, we aren’t talking about being squeezed a little by your debts. In practice, a little pressure from your debts is a great way to stop from going into debt further.
No, this is the case where you are actually finding it hard to meet your monthly obligations. If you can meet your payments, your best approach is to build up to using a debt snowball and paying yourself out from under debt. But if you can’t make it through the month, a debt consolidation loan may help to bridge the time until you can get things back on track with help from places like Wink Capital.
You Find Yourself Only Paying The Minimum Payment
Credit cards are notorious for tying you up for years, thanks to the mechanism known as a minimum payment. It is in their best interest to keep you comfortable and producing as they siphon the financial lifeblood out of you. (Does that sound strong? It was my intention.)
Much like some natural bloo0d suckers that inject a mild paralysis drug when they start on their victim, the minimum payment is designed to be the least painful way of paying back the credit card company.
But that minimum payment also works to keep you paying back for years to come. You really need to pay more than this amount in order to overcome the drain in your finances. If you find yourself unable to do that, a debt consolidation loan can help manage a better payment for you.
I would like to caution again that using the debt snowball approach is the preferred way to get yourself out of debt. But if you are being squeezed too hard between the months, and additional income is simply out of reach,m then consider consolidation.
The Situation with Monthly Debt is Overwhelming
Sometimes debt is a mental challenge. After all, it isn’t pure logic that gets you in a high debt situation. Sometimes there are events that are beyond our control, and we had no choice. Whatever the path that leads you to that situation, often there is a lot of emotional baggage that comes along with it, and it can easily become overwhelming.
To dig yourself out of debt, you need to have a plan, and you’ve got to feel good about the path you have chosen. However, that can be hard to do if all of your energy is being zapped by worry and frustration on a daily, or even hourly, basis.
If you find yourself in this situation, a consolidation loan can help reset the game plan and rejuvenate your financial game. Sometimes it only takes a little positive step to start building up momentum, and once self-belief is reestablished, it is much easier to accomplish even the toughest of goals.
Please Remember – A consolidation loan should be considered only after you have exhausted other means of working your debts.
But sometimes it can serve as a valuable tool in getting our financial ship pointed back in the right direction. The important thing is to use it as a tool, and not reuse the available credit it enables. Otherwise, you will end up in even worse shape, and nobody wants to be there.