Should I Consider Consolidation?
When minimum payments just don’t cut, it’s time to find another option.
An expert answer from Gary HermanHi Matt, First off, congratulations on the new baby. I remember how excited we were when our first was born, but I also remember how stressed my wife and I were about whether we’d be able to afford everything we needed to give our kids the best life possible. You’re going definitely going to need cash. Statistics say it takes about a quarter of a million dollars just to raise one child to 18 – and that’s not even including college.
In your situation, I’d definitely say yes that debt consolidation sounds like it would be a good option for you to get ahead before the baby arrives. Now it’s just a matter of choosing how you want to consolidate.
Just keep in mind as you explore DIY consolidation, your goal needs to be the lowest interest rate possible. That’s why 0% APR can be such a big benefit – 100% of every payment you make will go to reducing your debt. Choose the option that gives you the lowest interest, because it will allow you to pay off your debt faster. Now, once you’ve consolidated, don’t be satisfied making the scheduled payments on your new consolidated debt. Remember, the faster you pay your debt, the more money and time you’ll have to build your savings before the baby gets here. So pay it off in chunks with the biggest payments you can afford to make without sacrificing other expenses. Good luck and give us a call if you need more information! Gary Herman President of Consolidated Credit Read Gary’s bio