Is Debt Stress Creating More than just Financial Problems?Jan 29, 2015
Debt can take more than just a toll on your finances. Experts have long reported the negative effects of stress on the body, and that it can lead to all kinds of symptoms from headaches to sleeplessness and depression. When you’re feeling angry, irritable that can stem over into other areas of your life as well; home, work, community, even sometimes on the road (road rage). This stress can then take effect on your relationships which can lead to problems of its own.
Think about how you felt the last time you were under financial pressure, or came up short on bills one month. Did this affect you emotionally? Were you able to deal with debt stress rationally or did you feel your blood pressure rising at times from frustration or worry?
Taking action is one of the best ways to start relieving some of the pressure. As you start to pay down existing debt, you can also learn how to budget and set goals for yourself to prevent future financial problems. With Canadians enjoying low interest rates for the past few years, we tend to be somewhat credit happy when it comes to “essential” big ticket items. From mortgages, car loans, credit cards, and personal lines of credit it can be hard to stay completely out of debt. And while debt may be unavoidable at times, managing it is within your control.
There are many options available:
A debt consolidation loan combines several debts into one single debt with a lower attached interest rate. Debt consolidation is particularly helpful if you have several debts at a high rate of interest that you are having a hard time repaying. You can merge your debts and pay one monthly payment at a lower interest rate. With the money you save on interest payments, you can focus on paying down your debt faster.
Some debts are not applicable for debt consolidation. There may also be service or management fees associated with a debt consolidation loan that you should inquire about and be aware of. Loans may also require some type of collateral in order to secure the loan. This could be in the form of providing assets, such as a house or a car or, alternatively, providing a co-signer.
Are There Alternatives to Debt Consolidation?
There are many forms of debt consolidation. There is also debt management plans or you can make a consumer proposal. In a proposal there are no service, interest or management fees, and you can negotiate with creditors to pay back a portion of what you owe. The option you choose will most likely depend on your financial situation and amount of debt.
Contact a Debt Help Expert!
Set up a free financial assessment. A debt relief professional can answer any questions you have about consolidation and provide tips and advice for dealing effectively with debt stress. They will also help you determine the best course of action, including whether debt consolidation is the right step for you to take. If debt consolidation is not for you, they will help you investigate other options that may be more suitable for you.
Find out which option will work best for you with the repayment options calculator.