know the advantages and disadvantages of debt consolidation services
TRANSCRIPT
Advantages of Debt Consolidation Services
Easier to remember due dates and tracking payments
Paying only a single interest at lower cost.Possible to slash off a significant amount
of fees from your total debts.you can pay off all your creditors at once
and stop your debts from accumulating.
Most creditors are even willing to make adjustments to make repayment easier for
their clients, especially if there is a possibility that the client may file for
bankruptcy.
Signing up with the wrong debt consolidation company can only make matters worse for someone in debt.
not all credit counseling agencies or debt consolidation companies have your best interests at heart.
Some agencies offering counseling services that are actually designed to take advantage of your financial situation.
Disadvantages of Debt Consolidation Services
Therefore, if you do decide to sign up for counseling or a
debt consolidation program, it is crucial to do extensive research first before making
a choice.
o The tendency to incur new debts right in the middle of repayment. Bear in mind that consolidating your debts does not exempt you from your obligation to pay.
Another risk about consolidation:
You still need to keep up with your monthly consolidation payment to your lender.
o To make debt consolidation work, avoid incurring new debts from your creditors so that you can focus on paying off your loan.
Before you sign up for debt consolidation,
create a monthly budget plan to make sure that your income would be properly allocated. Bear in mind that
your number one priority should be completing your consolidation loan payments at the soonest possible time.
Source: http://www.newhorizon.org/credit-info/advantages-and-disadvantages-of-debt-consolidation-services/
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