Can Debt Consolidation Actually Improve Your Finance?

nomad

Very Familiar

Member

Jun 22, 2022

10,971

512

Dex

$0.010

Raw Dex

$0.700

• Dec 17, 2023

• #1

Debt consolidation means merging multiple smaller debts into a single big debt. For instance, you might have loan on multiple banks or individuals, you take a new loan pay all your existing debt with the loan and have one loan instead of multiple loans.

Do you think debt consolidation can actually improve your finances?

Well, the idea behind debt consolidation is to streamline repayment and pay your higher interest loans with a lower interest loan.

 

S

Stardom22

Very Familiar

Member

Sep 1, 2022

13,281

565

Dex

$4.300

Raw Dex

$0.817

• Dec 18, 2023

• #2

As far as l am concerned, that can never bring any chance to the financial status of a personal financial status. For the financial breakthrough one must learn how to avoid debt.

 

nomad

Very Familiar

Member

Jun 22, 2022

10,971

512

Dex

$0.010

Raw Dex

$0.700

• Jun 21, 2024

• Thread starter
• #3

yeah, you need to avoid debt but when you already have a debt, your finances can be manageable through debt consolidation especially when your payable interest is low

 

S

Stardom22

Very Familiar

Member

Sep 1, 2022

13,281

565

Dex

$4.300

Raw Dex

$0.817

• Jun 21, 2024

• #4

I think it's ideally for one to clear all their pending debts before they can embark on the journey for the financial freedom.

 

eldavis

Very Familiar

Member

Sep 4, 2022

15,124

665

Dex

$0.000

Raw Dex

$6.576

• Jun 21, 2024

• #5

To me this does not change anything, cause in the end you are still deep in debt. It's best to try avoid it completely.

 

nomad

Very Familiar

Member

Jun 22, 2022

10,971

512

Dex

$0.010

Raw Dex

$0.700

• Jun 22, 2024

• Thread starter
• #6

Yes, the best option is always to avoid debt but if you already have debt, debt consolidation can help you if your new interest rate is lower than the previous one

 

S

Sawe

Somewhat Known

Member

May 14, 2024

714

25

Dex

$5.000

Raw Dex

$0.823

• Jun 23, 2024

• #7

I think the only thing that debt consolidation does for you is to reduce the interest rates and give you more time to pay back. That means you are still in debt and not so financially stable. For stability, you need to avoid debt and work on ways to make more money.

 

nomad

Very Familiar

Member

Jun 22, 2022

10,971

512

Dex

$0.010

Raw Dex

$0.700

• Jun 24, 2024

• Thread starter
• #8

Sawe said:

I think the only thing that debt consolidation does for you is to reduce the interest rates and give you more time to pay back. That means you are still in debt and not so financially stable. For stability, you need to avoid debt and work on ways to make more money.

Click to expand...

Debt consolidation can make you financially stable if your payable interest rate decreases. You will still have debt but you will be paying less money on intererst

 

Niyi Briggs

Well Known

Member

Nov 27, 2022

7,835

318

Dex

$0.000

Raw Dex

$0.200

• Aug 15, 2024

• #9

It sounds to me like debt consolidation is still an extension of the problem and even makes the problem bigger. Won't buy that too.

 

R

Rubz

Notable

Member

Sep 12, 2022

1,612

15

Dex

$0.000

Raw Dex

$0.008

• Aug 18, 2024

• #10

I honestly do not think debt consolidation can improve one's finances. I believe a debt is a debt. It doesn't matter if they are smaller or it is one big debt.