Personal debt & debt consolidation
It’s likely heard all types of rumours about consolidating your debt. Some of these rumours portray debt consolidation as a quick route to clearing scattered debts. Others conjure up a worrying picture of escalating debt which, could lead to financial ruin.
The real situation, of course, lies somewhere the middle. Consolidating your debt may or may not be the best way for you to deal with your debt. It all depends on a variety of factors: not just how much you owe, but how much you earn and what kind of debts you’re thinking about clearing, as well as your attitude to debt and to money in general. There are a few rules that apply to most people. Take a look at these debt consolidation dos & don’ts.
DO
Do take professional debt advice if you’re thinking about consolidating your debts. You need someone who can help you examine your options, so make sure you talk to a professional that doesn’t just provide consolidation loans. Maybe you’d benefit from some budgeting advice so you can handle your debts yourself.
Take time to think carefully about the repayment term on your consolidation loan, if you take one.
DON’T
Don’t continue fighting if you really can’t afford your debt repayments. If you need help, ask for it - a debt adviser will be able to help you decide whether you need a professional debt solution, and if so, which one.
Further reading:
debtadvisersdirect.co.uk
