Debt Advice Helpline talks to many people about the decision whether to consolidate all their debt into one loan is a tough one. On the one hand a greatly reduced monthly bill would help reduce the financial pressure they are under, on the other hand having the debt continue on longer than they had hoped it would is far from ideal.
This quandary often leads to a number of people putting off decisions on their finances until it is too late – which leads to nothing but pain and misery financially speaking. Better then to make a decision early and back yourself in it says the Debt Advice Helpline.
But it is also important to do it with all the facts, which is why we have put together this quick checklist to help you decide whether to consolidate your debt into one loan or not.
The Debt Consolidation Checklist compiled by Debt Advice Helpline.
Pros
Helps to reduce the monthly bill, freeing up cash to spend on other things, or simply allowing you to be able to meet the payments
Stops any legal action if you are being taken to court for your debts
Stops phone calls and debt collection companies calling around the house
Are usually easy to arrange
Allows you to stop worrying about your finances constantly – meaning it will be as though a great weight has been lifted from your shoulders
All bills are in one place, making it far less likely you will forget to pay
Cons
Because you are paying less in payments the debt will continue for longer
Because the debt goes on longer the interest charged will be higher so you end up paying more back.
Debt Advice Helpline obviously knows debt consolidation is not for everyone. But it is a useful tool for those who are in desperate need for help with the pros and to whom the cons are something that are a drawback rather than a deal breaker. Always give careful thought to any financial decision you may make – but debt consolidation can certainly be a big help to many people.
Brought to you in part by Debt Advice Helpline
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