There are a lot of things that bring us joy at 1^st Franklin Financial, and high on that list is this: The sigh of relief that we hear from clients when their debt consolidation loan has been approved. After we’ve helped them through our simple application process, it’s a gift to see these clients feeling genuinely happy, ready to manage debt consolidation with confidence and start paying down their snowballing credit card debt.

Now they can look forward to a predictable, affordable monthly payment with a fixed term. But it can get even better. 

Our “Friendly Franklin Folks” aren’t just here to help people secure those helpful debt consolidation loans. We’re also glad to offer guidance to make sure our customers are in a better financial place as the months go by. 

Once you’ve breathed that sigh of relief, knowing you’ve eliminated some high-interest credit card debt by taking out a fixed-rate debt consolidation loan, what’s next? How do you keep that positive progress going? 

Building a Better Budget

If you know where every dollar of your income is going each month, you have peace of mind. You can make sure your hard-earned money isn’t being wasted, and you’ll know how much is available to spend. 

The key is setting up a system for keeping track. If you haven’t budgeted before, one option is to make a note each time you spend money (even on tiny things) or pay a bill. Do this for one month (going old-school by using a notebook or making a digital note on your phone or using an expense tracking app) and then write a list of the expenses you have each month – and the ones you might be able to eliminate. 

You can also go through credit card statements from the past three months to look for recurring costs or spending habits. Are you paying for phone apps or other subscriptions that you don’t really need or want (or forgot you had)? Cancel them, so you can keep that money in the future. 

Once you’ve got a clear picture of where your money normally goes, consider saving more money by making moves like negotiating a lower cable/wifi bill with your provider. 

(Looking for more budgeting advice? We’ve got you covered right here.)

Avoiding New Debt

Once you’ve paid down a credit card balance with a debt consolidation loan, you’ll likely have more money available in your monthly budget. So it might be tempting to spend a bit more than usual. 

But the last thing you want is to begin increasing your credit card balances once again. So it’s helpful to set a maximum amount that you’ll spend each week on extras like buying a new outfit or going out for dinner. Inviting friends in for a home-cooked meal (and maybe asking them each to bring a dish) can be just as much fun, if not more, than going out to a restaurant. 

Growing What You’ve Got: A Final Word on How to Manage Debt Consolidation Wisely

Since you’ll probably have a bit of extra money in your monthly budget after paying down high-interest credit card debt, one wise money move is to begin putting some of your income into savings each month. 

With 1^st Franklin Financial, you can begin saving with just $25 and then watch your money grow from there. And it’s flexible: Georgia customers on our Senior Demand Notes savings path can withdraw money at any time with no penalties. 

A debt consolidation loan can be a great first step toward financial stability and prosperity, and it opens up all kinds of possibilities. With some thoughtful budgeting and strategic spending, and a clear plan to manage debt consolidation effectively, your financial health can get stronger than ever!