You’ve probably lived with debt for so long that it’s difficult to imagine what your life could look like after you’ve repaid all your lenders – including your debt consolidation provider.
Can you imagine a life without debt? No phone calls from lenders asking for money, no more payments to make – just you, your money, and a future of possibilities.
Once you repay your debt consolidation loan, you’ll probably have more money than you’re used to. It’s natural at this point to perhaps celebrate your newfound fortune. However, we wouldn’t advise it.
Now is a great time to evaluate your circumstances and determine how your debts became unmanageable in the first place. In many circumstances, this would have occurred due to something beyond your control.
If you were struggling with credit card debt from excessive spending though, now might be the right time to prevent temptation by cutting up your credit cards.
You should also take the opportunity to create a household budget and understand exactly where your money goes. After all, regaining control over your finances is a fantastic feeling – we want to make sure you continue experiencing this.
Now you’ve got some spare cash, we advise stashing it away in a savings account. It’s generally recommended to have three months’ worth of salary payments saved up in the event you encounter financial difficulties in the future.
Set a target for a certain amount to be paid into this account every month. Ensure this is attainable and you stick to it.
The next time an unexpected expense comes up, this safety net should ensure you’re covered.
Although you can treat yourself every so often, it’s worth considering when purchases need to be made to avoid buyer’s remorse. For example, before buying a large expense – such as a games console or flatscreen television – wait three days before committing.
This rule means you’ll be less likely to be taken in by impulse purchases. If, after three days, you still think the purchase is a great idea – and providing you can comfortably afford it – this may be justified.
You won’t have a perfect credit rating after debt consolidation, but you’ll be in a good position to improve it. By not getting into unmanageable debt and making payments (on-time) to any lenders you choose to work with, you’ll slowly start to improve your rating so it’s in better shape.
In future, if you choose to buy a product such as a mortgage, you’ll be more likely to receive favourable interest rates.
Life after debt consolidation can be one of financial freedom. However, and don’t take this the wrong way, we hope we won’t have to speak to you again once your debt consolidation loan provider has been repaid.
This can be a brilliant stress-free time – and we want to keep it that way. With some careful budgeting, your finances can stay manageable.
If you’re seeking a debt consolidation loan to help secure your future, click the button below. We can help determine if this solution is right for you: