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Consolidating Debt
You’ve probably heard all kinds of wives tales about consolidating your debt. Some of them portray debt consolidation as a simple way to repay your creditors. Others conjure up a disturbing picture of increasing debt that inevitably leads to bigger problems.
The real situation, of course, lays right in-between. Debt consolidation may or may not be the best way for you to repay your creditors. It all depends on a wide range of factors: not just how much you owe to creditors, but how much salary you make and what kind of debts you’re thinking about clearing, as well as your attitude to debt and to money in general. There are, however, a few ‘dos and don’ts’ that should apply to just about anyone.
DO: Do consider talking to a debt adviser if you’re thinking about taking out a debt consolidation loan. You need someone who can help you explore your options, so make sure you talk to a company that doesn’t just provide debt consolidation. Maybe all you need is some advice on budgeting more effectively, so you can deal with your debts by yourself. Take time to think carefully about the repayment term for your consolidation loan, if you take one.
DON’T: Don’t keep on struggling if you really can’t afford your debt repayments. If it’s obvious you need help, ask for it - your debt consultant should be able to help you decide whether you need a professional debt solution, and if so, which one.
