If you've spent time researching solutions to your debt, you might have considered debt consolidation. This is when you combine all your debts into a single payment, usually by paying off your debts with a single loan. Combining your debt can often lower your monthly payment making the payment easier to manage.
While debt consolidation certainly has it's advantages, there are some drawbacks too. Often, consolidating your debt means you'll end up paying over a longer period of time. (It's how the payments are made lower).
Will Debt Consolidation End Your Debt Trouble? can help you discover more advantages and disadvantages of debt consolidation and to find out if it's right for you.
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I so agree with you. I’ve had a number of students ask me similar questions and I love the way you put it. May I quote you or forward this blog to them?
Debt Consolidation is once option. Debt SETTLEMENT may actually be an even better option for a lot of people, especially if they are beginning to get swallowed up in debt and thinking of bankruptcy. For those people, I HIGHLY recommend talking to a credible debt negotiation company. Settlement is usually far recommended to bankruptcy.
@Jonathan – You can certainly forward the blog or quote me whichever is easier.
@Bob – Debt settlement is certainly an option. However, I recommend it only to people who already have several charged off accounts that they can’t afford to pay off. If the accounts are still in good standing, debt settlement should be avoided.