What’s the Deal with Debt Consolidation?

There are many pros and cons to think about when you consider a debt consolidation loan. Here are just a couple to consider:

Pros:

• Pay Off Debt Faster
  • Debt consolidation could help you pay down your debt earlier. If your new loan has a lower interest rate and helps you save money each month, you could pay down your loan faster by making extra payments with the money you saved.
• Reduce Monthly Payment
  • Often when consolidating multiple debts, not only are you reducing the total interest, but also reducing the total amount of your monthly payment. If your desire is to pay off loans faster, make larger monthly payments to reduce the principal faster and save interest too!

Cons:

• Could Increase Interest Rate
  • If your credit score isn’t high enough to qualify for a lower interest rate, then a debt consolidation loan might cause you to pay more in interest over time. Make sure to consult with our team at Maple about what your rate could look like.
• Doesn’t Solve Underlying Problem
  • A debt consolidation loan can certainly help you organize your finances and make them more manageable, but it won’t solve the financial habits that caused the issue in the first place. If you choose to consolidate debt from things like maxed-out credit cards, make a plan to build better financial habits so you don’t find yourself in deeper debt down the line. If you need help making a plan, reach out to our team by contacting us. You may not know this, but we have seven financial counselors at Maple. All of them are trained to help you create a plan that works for your finances!

Shopping local is a great way to save a little cash while also supporting local businesses. Because there are fewer hands involved, buying local can often save you some money. You’ll likely save money by purchasing green beans from a produce stand because the farmer doesn’t have to divvy up his profits the way a chain supermarket does. It’s also a great way to improve your local economy. For example, every $100 you spend at a local business, $68 stays in the community. Follow your local news and check Facebook pages in your area to see what area businesses are offering locally made products. We know that holiday shopping can be stressful. You’re paying your regular bills, taking care of your everyday expenses, and planning for holiday shopping on top of that. It can be tempting to open multiple credit cards or store cards, which come with incredibly high-interest rates. Don’t get stuck paying big balances on multiple cards. We have numerous options that can help you fund your holiday shopping without spending more.