Wednesday, January 5, 2022

Budgeting & Debt Consolidation For 2022

 *This is a sponsored post which I will be compensated for*

 Being on a limited income due to disability, illness, injury, covid related has taught me so many things. I have been living on my own since 2018 when my husband and I split up and I had to learn how to budget and let me tell you it was not easy. I am going to share with you how I am managing it. 

The first thing I did was make a list of all my bills rent, vehicle, electricity, cable, heating oil like gas or propane. After I made a list of my monthly bills I was able to see what I had leftover if anything to use for oil changes, gas to drive around with, clothing/food, etc. But I have to tell you it is hard as I still came up short so I had to swallow my pride and go to local food pantries and be humbled to thank God I had food to place on the table to eat. I even had a friend lend me money to help out which is also hard as I am a strong, independent woman.

But before I was on my own I did file bankruptcy and end up using debt consolidation and a great company I found online was Debt  the steps to doing so is

1.     Check your credit score a bad credit score (300 to 629 on the FICO scale) might not disqualify you for all loans, but consumers with good to excellent credit scores (690 to 850 FICO) are more likely to win approval and get a low-interest rate.

2.     Make a list of the debts you want to consolidate credit cards, store credit cards, payday loans, and other high-interest debts and add up the total amount due. You’ll want your debt consolidation loan amount to cover the sum of these debts. Use the debt consolidation calculator below to see whether it makes sense to consolidate. After you enter your debts, you will see typical rates from lenders and any potential savings if you consolidated at a lower rate.

3.     Compare loan options shop for a loan that’s right for you; online lenders, credit unions and banks all provide personal loans for debt consolidation. Online lenders cater to borrowers with all ranges of credit, although loans can be costly for those with bad credit. Most online lenders let you pre-qualify so you can compare personalized rates and terms with no impact on your credit score.

4.     Apply for a loan when you’re ready to apply for the loan, gather documents such as proof of identity, proof of address, and income verification. Take the time to read the loan document’s fine print. Any extra fees, prepayment penalties, and whether the lender reports payments to the credit bureaus can affect your credit score as well as the total cost of the loan. If you don’t meet the lender’s requirements, consider adding a co-signer with good credit to your application. This can help you get a loan that you wouldn’t qualify for on your own.

5.     Close the loan and make a payment now that you’ve found and been approved for the loan you want, there’s one important step left. If the lender offers direct payment, it will disburse your loan proceeds among your creditors, paying off your old debts. Check your accounts for a zero balance or call each creditor to ensure the accounts are paid off. If the lender doesn't pay your creditors, then you’ll repay each debt with the money that’s deposited into your bank account. Do this right away to avoid additional interest on your old debts and to eliminate the temptation to spend the loan money on something else.





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