Debt consolidation is a process by which you combine several unsecured debts into a single monthly bill, usually with a lower interest rate than the individual debts that you once carried, and usually for a lower amount than the total of the other debts. While not all debt consolidation efforts provide the kind of relief that an individual or a business is looking for, if you work with the right company, it is often possible to come out of debt consolidation with an improved financial outlook for your company or for yourself.
How debt consolidation helps
It’s usually possible to arrange your debt consolidation payment for an amount that is less than the total of all your other payments, and at an interest rate which is much lower than at least some of the other payments you formerly carried. While it could be that the duration of your debt consolidation payments may be longer than some of the individual payments, you do usually end up paying less each month, and freeing up cash each month for other business purposes.
Simplified accounting
When you’re making a single bill payment each month, as opposed to many individual payments to creditors, it can be much easier to manage your business affairs. You’ll also be much less likely to overlook individual payments, especially if you had numerous payments to make when you were paying several other creditors.
Potential for improving your credit score
If you were having difficulty making your payments to some of your original creditors, you were probably damaging your credit history by being late with payments, or by missing them entirely during some payment periods. When you have a single payment to make, and you faithfully submit that payment on time each month, you can quickly improve your credit score by being prompt and reliable.
Debt consolidation with Black Wolf Capital Group
Debt consolidation can help your business out of a tight financial situation, and simplify your bookkeeping and accounting significantly. If you’ve been thinking about a possible debt consolidation, contact us at Black Wolf Capital Group, and let our financial specialists help you explore ways that a consolidation might work for you.