get a lot of searches on this site from people looking for information about debt consolidation.Why do people want to consolidate their credit card debts, student loans, and medical debt all into one payment?
The reason I haven’t written about debt consolidation until now is because in most instances I’m not a big fan of doing debt consolidation.
Many of the debt consolidation companies that you’ll find out there really aren’t going to do much for you that you already can’t do on your own – and they’ll charge you an arm and a leg to do it.
Other debt consolidation companies are just plain scammers looking to take advantage of people when they’re down.
Still, there are situations when a debt consolidation loan can be the right thing to do. Debt consolidation is when you take several debts, and consolidate them into one loan in order to take advantage of lower interest rates, lower payments or the lure of having a simplified situation and one easy payment instead of several payments.
Are there times when doing a debt consolidation is actually a good idea? You just need to make sure that you consider the points mentioned above, get yourself on a written game plan, and make sure that the debt consolidation loan is actually improving your situation instead of making it worse.
That means you aren’t lumping low and high interest loans together in a rate somewhere in the middle, you’re not extending the debt out into the future, and you’re not consolidating your debt without first getting yourself on a budget.When can a debt consolidation loan be a good thing?Just remember to be careful and consider some important things before jumping into a debt consolidation loan. Doing a debt consolidation loan should mean that you’re moving into a better situation that is more manageable for you and your family. When doing a debt consolidation loan there are a few important things that you need to consider.If you don’t examine these things it may mean that you’ll make your situation worse – rather than better.So as you can see there are a lot of reasons that doing a debt consolidation may not be in your best interest.Carefully consider these points before heading down this road – and make sure that you’re actually addressing the underlying issues that have gotten you into the situation in the first place.