Know when debt consolidation is (and is not) appropriate.

Debt consolidation can be a promise from God to someone who has financial difficulties. It can even be useful for someone who  is not  in financial disaster by allowing him to generate many debts in one convenient payment. Generally, for people in difficult financial situations, debt consolidation is appropriate when it allows the debtor to avoid bankruptcy by reducing payments to reasonable levels. If you are able to secure a loan with a lower interest rate than your existing debts, debt consolidation may be a good choice for you.

  • However, if you are in financial trouble and you are  not  able to guarantee a loan with a lower interest, debt consolidation is not a good idea, even if that makes your many monthly payments into one Alone and suitable. This is especially true if you are considering using a commercial debt management service, as these usually come with their own associated fees.

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