Just Until Payday

The dos and don’ts of debt consolidation

It’s likely heard all types of stories about consolidating your debt. Some of these rumours portray debt consolidation as the easiest and quickest way to repay your debts. Other rumours conjure up a worrying picture of increasing debt which, inevitably leads to bigger problems.

The real situation, of course, lies right the middle. Debt consolidation may or may not be the best way for you to get out of debt. It all depends on a range of factors: not just how much debt you have, but how much you earn and what kind of debts you’re thinking about consolidating, 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 talk to a professional 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 only provide debt consolidation. It’s possible that you’d benefit from some budgeting advice so you can handle your debts yourself.

Make sure you think carefully about the repayment term on your consolidation loan, if you take one.

DON’T – Don’t keep on fighting if you really can’t afford to pay your creditors each month. If you need help, ask for it – a debt consultant should be able to help you decide whether you need a professional debt solution, and if so, which one.