What do the Taft Financial reviews say about debt consolidation? Does debt consolidation live up to the hype? Can you find debt relief through such a convenient, low-interest method?
Taft Financial to Help With Debt Consolidation
Debt consolidation is a way out for many consumers who find themselves in a less-than-ideal financial situation. What typically happens is a consumer will be using credit cards in a manageable way, paying off most (or all) of the balances each month. Then, unforeseen circumstances lower the amount of money that can be paid to the credit cards and raise the number of expenditures that the consumer needs to use the credit cards for. When the monthly bills come due, the consumer has no choice but to make a nominal minimum payment on each card. Suddenly, there are double-digit interest fees at play. The combination of financial difficulties and the high-interest rates bears down on the consumer, who is “upside-down” financially before they know it. And once you’re upside down–once you’re in debt–it’s hard to get right-side-up again.
Taft Financial: What is it?
Okay, but what is Taft Financial? What do they do? Can they help with my student loans? Taft Financial is a debt consolidation company that works exclusively with credit card debt. They want to help you turn multiple debts into one convenient monthly payment with a lower interest rate. We’ll explore the concept of debt consolidation further below, but for now, let’s say this about it: Debt consolidation can be a stepping stone on your path to debt relief.
What is Debt Consolidation?
Debt consolidation, in theory at least, is a simple idea: You start with multiple loans (be they credit card or otherwise), and then you take out a separate loan to pay off all the others. That’s it. Where things can get tricky is: (a) Where do you get that debt consolidation loan? (b) Can you get a debt consolidation loan with a lower interest rate? (c) Can you make the payments on your debt consolidation loan on time every month until it’s paid off? (d) Can you alter your spending habits to avoid creating more debt while you’re paying off the debt consolidation loan? That last one is key. Paying off all of your debts and becoming debt-free isn’t much help if you get right back into debt again. Many personal finance gurus will advise you to work on retraining your relationship with money, which isn’t to say that bad habits are the reason you got into debt in the first place. However, a cautious approach to budgeting may help you work through your current financial situation and ensure that you never return. Now, let’s look at how to consolidate debt.
How Does Debt Consolidation Work?
There are a few ways to go about debt consolidation when you’re making monthly credit card payments. The first, and possibly the most popular, is to go through a company like Taft Financial for a personal loan for debt consolidation. Once you go through the application process, they’ll pay off your credit card debts in full. In turn, you’ll start paying them a single, convenient monthly payment at a lower interest rate than you were paying the credit card companies. Another popular debt consolidation method is to get a new credit card with an introductory 0% APR balance transfer offer. Offers of this type typically allow you between 12 – 20 months to pay off your balance transfer without interest; the only problem is that these offers can be hard to come by–especially if you’re already experiencing financial duress. Whichever method you choose, you’ll want to adhere to strict money management tips to help you pay off your debts and then stay out of debt once you’ve paid them in full.
Is Debt Consolidation a Good Idea?
Debt consolidation can be a good idea if you have multiple high-interest credit card debts that you’re trying to pay off over time. As you carry over balances on each card, you incur interest fees that are much higher than you would with a personal loan, student loan, auto loan, or mortgage. Just to put things into perspective, a federal student loan for an undergraduate student might be as low as 2.75%. Car loan rates can be considerably higher, but if you have an excellent credit score and shop around, you may be able to find an APR on a new car for under 4%. A mortgage interest rate is typically under 5%. Yet, the average credit card interest rate is nearly 15% for existing accounts (and nearly 18% for new offers). If you only have “fair credit,” you’re probably looking at an APR over 20%.
What is a Debt Consolidation Loan?
A debt consolidation loan is a personal, unsecured loan that allows you to pay off multiple high-interest credit card debts in full and, instead, make one monthly payment at a lower interest rate. Debt consolidation loans can also be used to pay off other types of debts, including student or auto loans. A direct consolidation loan helps you combine multiple federal education loans into one loan. The term for combining car loans is: auto loan consolidation. Debt consolidation companies typically specialize in one specific type of loan; in the case of Taft Financial, they specialize in credit card debt.
Should You Look to Taft Financial for Debt Consolidation?
The most common question consumers with credit card debt ask is, “How can I consolidate my debt so that I can pay it off in full?” The reason consumers wish to pay their debts in full is because they avoid causing damage to their credit that will last for ten years or more. Companies like Taft Financial can help you do this, provided you are able to make your payments on time. So if you’re carrying over balances on multiple credit cards and you want to get out from under your debts, you might consider Taft Financial for what they have to offer you. Applying for Taft Financial doesn’t cost you anything.
Apply for Taft Financial Today
If you’re ready to take the plunge, consolidate your credit card debts, and pay them off, apply for Taft Financial today.