• Skip to content
  • Skip to primary sidebar

Pennsylvania Debt Consolidation Quote

Learn how to consolidate debt in Pennsylvania PA

debt freedom

What To Do After Completing Debt Consolidation

May 27, 2013 by penn

What To Do After Completing Debt ConsolidationHave you ever imagined how life would be like after you have sent that last payment on your debt consolidation program? If you are just starting your journey now, this will be around 5 years in the future. Did you ever think about what you will do then?

The exact details are different based on the debt relief program that you will use to get out of debt. That is because their effects are different from each other. However, you can expect that some of them will be quite similar.

One of the common things that you have to accomplish, and the first, is to confirm that you are truly debt free. If you used debt consolidation loans, you have to get a certification from your lender that your debt had been completely paid off. If debt management is your choice of debt relief, then you need to get a report from the company you hired to manage your debts. It is either they will help you acquire the certification from your creditors or you will request it yourself.

You should also look at your credit report to see if the changes in your debt status had been recorded. If it is not yet there, call your creditor or lender and ask them to revise your status. You want to proclaim to the world that you are already debt free.

While you are looking at your credit report, see the current status of your credit score. With debt consolidation, the chances of that being too severe is unlikely to happen. But still, it pays to know if you need to work on increasing your score. If not, then you can proceed to the next task.

At this point in your career, you should have a big chunk of your usual expenses removed. That means it is time for your to change your budget plan. Since getting out of debt is done, you will work on staying out of debt. One of the best tools to make this happen is your budget plan. You need to keep living on a budget to ensure that you will never be in debt again. If your current budget works for you, think about putting the freed debt payment money into your savings. It is best to grow it so you can stay out of debt.

Here’s how that will work. When you have savings, any emergency situation will not have to compromise your current budget. If your extra money cannot afford the immediate need, you don’t have to borrow money just to afford it. You can easily finance that need. Even if your main source of income is compromised, you can be assured that you have the means to feed your family for the next couple of months. Even if no emergency need happens, you can enjoy that savings well into your retirement. Or, you can opt to buy an expensive item (like a home), in cash. It is more enjoyable to own a home that you did not put yourself in debt for.

Lastly, you need to start making the right spending choices from now on. Even if your money is in abundance, choose if every expense is really necessary. A low cost of living with a huge reserve fund is more appealing than a life full of vacations and trendy possessions but a mountain of debt.

When you have all of these in place, this is the time when you can celebrate and congratulate yourself. Once you are sure that your chances of landing in debt is minimal, that is a real cause for celebration.

Filed Under: debt consolidation, debt relief Tagged With: after debt consolidation, budget plan, debt consolidation, debt freedom, stay out of debt

What To Do After The Approval Of Your Loan For Debt Consolidation?

May 24, 2013 by penn

There are many pitfalls in debt consolidation loan. This article is not meant to bash this debt solution. In fact, we’re here to help you make sure that you avoid all those pitfalls. If you got yourself in debt, that means you are not in the best position to manage a huge amount of money.

What To Do After The Approval Of Your Loan For Debt ConsolidationDebt consolidation loan is all about getting a huge fund to help you pay off what you owe. The idea is to combine your debts by paying off the others with this one loan. That will leave you with only one debt to deal with.

One of the temptations that you will encounter in this debt relief program is when you get that loan approval. Since it is a big amount some people are tempted to use it on something else – at least a part of it. This is not right. So to help you override this feeling, here are the things that you must do once you get the approval on your loan.

Before you can even think about the temptation of using the loan to buy something expensive, go to your bank and pay off the debts that you intended to close. Whether they are credit card companies or lenders, you should settle what you owe immediately.

But after that, there are a couple of things that you have to do.

First of all, keep your credit cards. This is one of the temptations that you have to avoid. Once you have paid off your cards, they will all have zero balances. You want to keep yourself from spending through these cards and thus increase your debt.

Next is to arrange a payment plan. This should have been done before you applied for the loan. However, there is no harm if you haven’t. But you have to do it now. Start with your budget plan. Indicate your income and expenses. When you are plotting your expenses, identify the wants and the needs. You need to rank your priority expenses to ensure that you are putting money into your priority list. Make sure this single debt payment is included in your budget so you will never forget to pay it. Put up reminders that will ensure this payment will always be met.

Lastly, you may want to build up your reserve fund. Growing your savings is a very important part of staying out of debt. Sometimes, people do all the right decisions when emergency strikes, they are simply not prepared for it. Any immediate and sudden expense will have to be borrowed if you do not have the savings to finances it.

Increasing your income maybe a good idea to help make this possible. If you have just enough for your expenses and your debt payment, then you need to do something to increase your income. The option of cutting back on expenses is there but that is only limited. Increasing your earning may be more appropriate to quickly grow your savings.

Follow these steps and you are sure to make debt consolidation loan a success in your financial life.

Filed Under: debt consolidation loans, debt relief Tagged With: budget plan, debt consolidation loan, debt freedom, debt payment plan, debt relief

Primary Sidebar

Recent Posts

  • The Unconventional Guide to Holiday Spending
  • Ever Wondered Why Some People Find It Difficult To Get Out Of Debt?
  • Top Money Tips for 2016: Part II
  • Top Money Tips for 2016: Part I
  • Ways Poor Credit Can Cost You

Pages

  • Contact Us
  • Disclosure
  • Pennsylvania Debt Consolidation Quote
  • Privacy Policy
  • Sitemap

Copyright © 2022 · Genesis Framework · WordPress · Log in