Debt consolidation is the most useful for those who feel like they are continually falling into a pit of financial problems and despair. It can help make the debt manageable and help you get your monthly payments down to a level that your business can afford to pay.
Consumer debt in the US is at never-seen-before levels as US consumers racked up nearly $14 trillion in the first half of 2019 alone. That means consumer debt has gone up for 20 consecutive quarters in a row. Many people are looking for a way out of this debt, and debt consolidation can be an answer to helping make your monthly payments more affordable for you.
Pros & Cons of Debt Consolidation:
However, like any form of financial assistance, debt consolidation has both its pros and cons. The following are some of those pros and cons to help you determine what might work for you:
Makes your debt more manageable by making your monthly payments affordable.
Most people can help cut their interest rates by consolidating their debt, which can help them pay other bills.
Help you get your credit utilization down to help you bring up your credit score.
Debt consolidation will help your credit score more than using debt settlement programs which may hurt your credit score in the long term.
You need to address the spending problem and live within your means or the debt consolidation or it’s just a “reset” for you to spend more again.
It may entice you to start running up your cards again soon as you reach zero, which puts you in the same position again.
Some debt consolidation plans may not help your interest rates depending on the debt consolidation program that you choose to use.
You might have debt counseling fees added to your payments if someone is helping you consolidate your debt.
How It Works
Debt consolidation is different for everyone and different loans can cost different amounts of money. It’s important that you learn a lesson using debt consolidation and are able to make a plan that you don’t get back into the same problem again.
For more information about how you can control your debt, please feel free to contact us! We are here to assist you and are always happy to help!