What to Avoid
I've heard that if you incurred a lot of debts, one way you can manage to pay all this is to consolidate them. It sounds feasible but what do I need to avoid if ever I plan to have debt consolidation?
Last edited by Margaret; 08-13-2009 at 05:56 AM.
What types of debt are you planning to consolidate? Let's say you have a lot of credit cards and all of them are almost maxed out. You decide to consolidate them in order to be able to pay all of it.
One problem that people encounter is that they still use the cards in buying. What happens therefore is that you pay for the consolidated amounts as well as the new one.
Last edited by Daniel Smith; 08-12-2011 at 08:12 PM.
What kind of debts do you have anyway?
Quite right. Most people think that once they have found the solution, that's all there is to it. It is not just about debt consolidation but a change of habit as well.Originally Posted by Daniel Smith
It's easy. The hard part is paying it.
Fighting fire with fire is not an easy solution. In this case its debt consolidation. Think about it. You have debts and what to pay it by incurring more.
You know, the usual. Credit cards, utility bills, mortgage. I'm doing good so far. Just looking forward.
But isn't that what consolidating debts is all about? Making it easier to pay for your debts?It's easy. The hard part is paying it.
I have a question. Don't they give you other advice when you consolidate debts?
Here are the pros of consolidating debts. A debt consolidation loan is very helpful if you ran up your credit cards while you were in, say, business school. This is also good if you have a couple of high interest installment loans like student loans or car loans. Doing this will allow you to put the debts into one manageable payment. Thus, you can avoid late fees, extra charges, and the bad credit that will inevitably result when you can't afford to pay regular bills.
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