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10 Secret Things You Don't Know About Debt Consultations

Living debt-free is a dream that everyone wants to achieve. Though you have a lot of income or even if you are on a tight budget, some ways can help you to reduce your debts. Check out our best ways of dealing with your debt and let's get you one step closer to financial freedom.

Take help from Debt Consultation experts for debt consultations and know how to have financial freedom. In this blog, Debt Consultation experts have uncovered some debt facts those most people don't know. 

Here Are the 10 Surprising Secret Facts About Debt Consultations

1. Medical debts have the biggest effect on people's life satisfaction 

Debt-free people are more likely to indicate life happiness, as one might anticipate. As per the study done by Debt Consultation experts on the psychological cost of debt, it is found that on average, 83% of those without debt and 70% of those with debt were content with their lives.

It's noteworthy to note that your level of life satisfaction is significantly influenced by the type of debt you have. Compared to other types of debt, only 64% of those with medical debt reported being satisfied with their life. Those who have mortgages, on the other hand, reported being content with their lives 86% of the time.

2. Debt consolidation combines multiple debts, not erases them

Debt consolidation is the process of combining and paying off several debts at once utilising a new loan, line of credit, or debt management programme. You will just have one monthly payment to worry about in addition to maybe being eligible for a cheaper interest rate than what you were previously paying.

It's crucial to realise that debt consolidation does nothing to lower the amount you owe, even while it can make paying down your debts simpler and more manageable.

With a debt consolidation loan, for instance, you'll need to confirm that you can afford a new monthly payment amount and possibly commit to making consistent payments for months or even years.For this you need debt consultations with the experts. 

3. Millennials have the lowest average credit card debt

You may assume that millennials are taking on a lot more debt than prior generations given the criticism they've received for their financial choices. But the situation is precisely the contrary when it comes to credit card debt.

The millennial generation is the one that is least likely to have credit card debt, according to our investigation of American credit card usage.

According to Debt Consultations study, only 56.7% of millennials and 65.6% of baby boomers have credit card debt, respectively.

As per our research, millennials had a $5,453 average credit card debt, compared to $6,627 and $6,800 for Generation X and baby boomers, respectively.

4. You can change your repayment terms 

You can adjust your repayment conditions when you take out a debt consultation loan or line of credit to make your debt more manageable, reasonable, or both.

You might be able to adjust the following:

Switch to a fixed interest rate: Credit cards, for example, frequently have variable interest rates that can change over time and potentially raise monthly payments. Your variable-rate debt may be consolidated with a fixed-interest, fixed-term debt consolidation loan or a home equity loan, ensuring that you will always know how much you must pay back each month.

Change your repayment term: You might be eligible for a shorter or longer payback period by combining your debt with a new loan or line of credit. It is a fact that a shorter term may let you pay off debt faster, but monthly payments will be higher whereas, with a longer term, you may be able to buy time and scale back monthly payments, however, you are getting more interest at the end. 

5. Your age of getting your first credit card has a significant impact on how much debt you are carrying. 

As per Debt Consultation research, those who are getting their first credit cards from the age of 21 to 24  have the most credit card debt at $6,461.  And who is getting their first card from 18 to 20, with an average of $6,050?

The group who obtained their first cards at age 25 or older had the highest average, coming in at $4,234, though it should be noted that this lower figure may be somewhat attributable to the fact that they have had less time to accumulate credit card debt.

6. The couple does not reveal debts until 10 months into the relationship

Couples mostly put off talking about money in general, and dealing with debt can be particularly challenging. Since so many individuals are embarrassed to have debt, it makes sense that they wouldn't want to discuss it with a romantic partner or else debt consultations experts are always available for you at Debt Consultation.

We discovered that the typical pair didn't disclose how much debt they had until after 10 months of dating when the Debt consultation examined the financial timeline of partnerships.

7. Mostly men and women have hidden debt or lied about having it to a partner

Debt Consultations research is showing that 71% of people, who are in serious relationships have confirmed that they are committing financial infidelity at least once. 22% of men and 24% of women admitted that they do lie about their purchases. 

8. If you have no more than $5000 in debt then you are middle class

Americans define the middle class in many ways. One of the surprising responses to define the middle class was having no more than $ 5000 in debt. On average 20% felt that it was a marker of being middle class.  And it is a fact that 7.5% felt that being middle class meant not having any debt at all. 

9. The wide impact of debt 

It is a fact that debt can affect in many ways. It not only reduces your level of life satisfaction, but it can cost you money and it is something you will eventually need to discuss with your life partner or  debt consultations with experts. Debt is not inherently bad, but if it is weighing you down, then it could be time to focus on becoming debt-free. 

10. Debt consolidation entails good potential financial standing 

Debt consolidation may help borrowers improve their financial situation since it requires them to agree to a strict repayment schedule that is punctual. Additionally, a higher credit score may result from this.

Borrowers having a track record of on-time payments are preferred by potential lenders. Therefore, opting for debt consolidation could actually benefit debtors in the long run, increasing their chances of obtaining future loans with favourable terms.

Final Thoughts 

Debt Consultations are beneficial for borrowers looking for a simplified and easier way of on-time loan repayment. It is a huge support for borrowers who have multiple loans and are struggling to make their payments on time.

Therefore, make sure to evaluate the pros and cons of debts, understand your current debts and decide if it is the right choice for you or not or else let Debt Consultation do it for you. Take the help of our experts. 

By Author: Allen Sharen | 09 Jan 2023

More Blogs is an independent marketing service that is supported by advertising. It is not provided by the companies whose products and service are discussed. Opinions expressed here are alone and have not been reviewed, approved or otherwise endorsed by any third party. The company is not a lender, creditor, or debt collector. Consumers may access a variety of consolidation options in addition to a loan. Consumers should be aware that interest rates for consolidation loans typically range from 5.99% to 35.99% Annual Percentage Rate (APR). It is recommended that consumers consult with a qualified financial advisor before taking on a consolidation loan. We do not discriminate on the basis of race, color, religion, sex, marital status, national origin or ancestry. This website is owned and operated by AXAD ,LLC, a provider of information and resources to help consumers understand and access consolidation options.