Debt consolidation lenders are there to help you every step of the way.

But it is important for you to not only be prepared as mentioned, but also realistic and upfront about your current financial repayment abilities.

Create a budget

Budgeting is important in each and every financial situation. By budgeting you will be able to know exactly how much you are able to afford on a debt consolidation loan. When you apply for a loan, you can relay all the information you have to the lender, which will in turn only benefit you.

Many lenders will favour applicants who are able to present a budget as it shows that you have prepared and that you are serious about becoming debt-free.

You budget should include all your daily, weekly and monthly expenses. Ensure that you do not overlook any expenses as this will rob you of the benefit of a higher disposable income.

Loan repayment amount

After creating a budget, you should now have a fairly good idea of what repayment amount you can afford on a debt consolidation loan.

Remember, the aim of debt consolidation is to improve your immediate financial situation and to create a higher disposable income. Not to mention the ultimate goal of becoming debt-free.

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