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Do you spend more than you earn? Do you borrow money every month? If so, budgeting may be able to put an end to your financial problems.
Even if you feel comfortable with your finances, budgeting is still important, since you need to save for the future. If you don't seem to manage your finances even with budgeting, then bill consolidation may be able to help you take care of your bills.
With proper guidance, you can control your expenses and pay your bills on time.
You can pay off multiple outstanding bills on time in 2 different ways: (a) You can consolidate bills into one monthly payment with bill consolidation (b) you can follow a budget to manage bills you need to pay .
Let’s find out how.
Bill consolidation is the process of consolidating bills into one monthly payment through a program or a loan. It allows you to make only one payment for all your bills instead of 7 or 8 every month. Usually, your interest rate will be lower than what you’re paying now.
|Bill consolidation programs||Bill consolidation loans|
|Bill consolidation programs consolidate bills into one payment by negotiating with creditors and debt collection agencies to pull down your interest rates and schedule an affordable repayment plan in exchange for a nominal fee.||Bill consolidation loans help you pay your bills with a low-interest loan. Basically, you take out an unsecured or a secured loan to pay your bills and fulfill other financial obligations. Afterwards, you have only one bill to be paid.|
These programs are quite similar to debt consolidation programs. Bill consolidation companies consolidate multiple bills into one simple, easy monthly payment plan. At OVLG, a financial coach takes the lead on bill consolidation programs. They will negotiate with your creditors to lower your monthly payments on credit card bills, medical bills, utility bills, etc. If your creditors agree to cut your interests, the financial coach will give you an affordable monthly payment plan. Once those negotiations are done, you can pay all your bills in one payment every month until your debts are paid.
Benefits of bill consolidation programs
Types of bill consolidation
Budgeting is a skill that comes in handy for everyone. Not only can it help you cope with your expenses, but it can also help you get rich. It's a planned way of dealing with finances. Budgeting involves a thorough calculation of your gross income over a particular period. It takes into account your estimated expenses for the same period, and allows you to save the rest of your income. It helps you to prioritize your expenses, so as to increase your savings. Better management of your finances with an effective budget can help you pay off your bills and debts over time, and set money aside for the future.
A successful budget usually follows certain steps for effective financial management, as enumerated below:
Budgeting has its advantages, which you can see below:
Nothing is better than managing your bill payments with effective budgeting. Usually, budgeting can help with bill payments when:
Budgeting won’t help to lower your interest rates or payments. If your main goal is to lower your monthly payments, then bill consolidation is the best option for you. OVLG can help you with both these options. Call 800-530-OVLG to learn how to budget or consolidate bills.
If you're finding it hard to pay your bills, call our toll-free number immediately. OVLG can help you in a number of ways:
|provide an initial free consultation||provide an initial free consultation|
|thoroughly review your financial situation||analyze your income and expenses|
|balance your budget by evaluating your income and expenses||ask you how much you can pay every month|
|take all your bills into account||lower your bills|
|draw up an affordable payment plan||Lower your bills|
|forward all your payments to your creditors on time||waive penalties and fines|
|guide you to maintain your finances to avoid future indebtedness||arrange a simple low monthly payment plan|
On-time payments can help you to save a lot and maintain a debt-free life. Budgeting is not a one-time activity. It's an on-going practice you need to follow for leading a healthy financial life. Likewise, when you want to pay all your bills through a consolidation program, you have to follow the repayment plan.
Multiple bills may often seem difficult to manage, especially if you’re not trained in financial management. Inadequate income can result in irregular and missed payments. Consequently, your debt load keeps increasing due to accrued interests and penalties. If you're facing these kinds of issues, learn how budgeting can be of help:
Let's discuss how you can consolidate different types of bills to save money and manage your financial life like a pro.
Credit card bill consolidation programs involve enrolling your high-interest credit card bills in a program, then paying them off using an affordable payment plan. Just make sure you choose a reputable bill consolidation company. Find out how to consolidate credit card bills.
Do you have hefty medical bills? If so, then you can consolidate medical bills into one payment at an affordable interest rate. Just make sure you consolidate them before your medical bills are assigned to collection agencies. Here are a few other ways to handle medical bills.
You can include utility bills into an affordable repayment plan with bill consolidation. That helps to lower monthly bills and reduce your stress load. The best part of consolidating utility bills through this program is that you have just one fixed monthly payment. You will know how much you have to pay each month, and can adjust your household budget accordingly.
A poor credit score can make it difficult to qualify for bill consolidation loans, which affects your ability to consolidate bills into one payment. Lenders will doubt your ability or intention to repay, and will hesitate to give you an unsecured consolidation loan to pay your outstanding bills. Some lenders will refuse to loan to you entirely, while others will agree only to write an unsecured loan at a high-interest rate. Now, the big question is, is it worth paying a high-interest rate on this new loan?
Secured bill consolidation loans are comparatively easier to qualify for when you have a poor credit history. That's because you have to pledge collateral against the loan. That means if you fail to pay off this new debt, your lender can seize the collateral. Again, the big question is, are you ready to risk losing your assets to pay your credit card bills, medical bills, and utility bills?
A smart way to consolidate bills with bad credit is to enroll in bill consolidation programs. The eligibility criteria are easy for these programs. You can qualify for these programs even with a low credit score, and bill consolidation companies won’t charge extra fees for that. So, when you want to pay all bills at a low-interest rate, and you have poor credit, it's better to enroll in these programs.