What to look for when consolidating debt
Either way, debt consolidation can be helpful to your financial situation. Rather than asking “Is debt consolidation good or bad?
”, a better question might be “Is debt consolidation effective?
Another challenge is acknowledging that what works well for one person won't always work out so well for someone else.
Turing a line of credit with low interest rate into a consolidation loan might have seemed like a great idea at that time, but it's important to bear in mind, if you don't reduce your overall expenses so that they are in line with your household income and have a strategy to manage annual expenses and emergency financial situations, consolidating your debt onto a line of credit is only going to help you for a short time.
Or if the new loan has a longer term, you may be able to lower your monthly payment.” Here’s a short overview of debt consolidation practices that can help you determine whether debt consolidation is good or bad for your financial situation.With a debt consolidation or online debt consolidation program, you’ll take out a new loan to pay off your existing loans and debts.Today I still owe about ,000 on my line of credit and ,000 on 2 credit cards.I have a stable job and make a reasonable salary and I’ve tried hard to reduce my debt.