Guide to consolidating your debt

How do you pay less on your credit?

Access to credit and facilities where warehouses and stores generally allow you to buy goods, for example, for months without interest or buy today and pay later, causes you to lose control of your finances and spend more than you can afford.

Spending money without planning and knowing your ability to pay can put you in a dizzying debt, jeopardize your family's finances, and, of course, affect your credit history.

Are you in such a case? Did you reach the top and more than you can afford?

The important thing is to want to stop the increase in debt and achieve financial stability as soon as possible. The good news is that it can be through debt consolidation, also called debt reunification.

What is debt consolidation?

Debt consolidation is one way you can reduce your current debt. This procedure involves approaching the institution that offers the best payment conditions and successfully settles the debt you have acquired at another institution.

This allows you to have one debt with one financial institution and get better credit conditions, for example, a lower rate. This economic strategy aims to reduce your current expenses on different cards and take better advantage of your monthly payments.

Create an account; if what you spend each month on your credit barely covers the minimum, you create unpaid debt. Therefore, combining these debts may not allow you to pay less, but you will contribute more significantly to your debt, decreasing from month to month.

Remember that with consolidation, although the payments may be lower, the period for paying off debt can be extended because you will start from scratch.

Why should you consolidate debt?

• It is easier to control one loan than five cards. You don't need to know multiple courts and payout dates, nor do you have to pay various annual commissions.

• Before consolidating your debts, ensure that the interest rate is lower than that of your separate debts.

• Remember that reducing your monthly payments will also increase the length of time you have to pay them off.

• Creating a budget is of utmost importance because this way, you will know your ability to pay accurately, and by combining your debts, you will be clear about how much you can commit to paying.

• Identify expenses you can do without; this will open up the possibility of savings.

Remember that having a good credit history is key to being offered other credit, such as consolidation.

Point Break Financial offers its clients and those who do not have the option to consolidate debt. This means you can pool all your debts without affecting your rating, and Having a good credit record directly affects the likelihood that a financial institution will give you a loan.

In recent years, there has been a lot of talk about debt consolidation, but what exactly is it, and how can I benefit from it?

First, we must understand that debt consolidation consists of asking for a loan to cancel; in this way, all or most of the debts have become a burden on you.

Debt can be a source of personal frustration if you don't know how to manage it. Debt, in and of itself, is not a bad thing. Debt is proof that the financial institution trusts you and your ability to meet loan payments.

However, it's often difficult to see a solution to a payment problem if the options haven't been exhausted. Requesting debt consolidation may be the best solution for you.