Can Debt Consolidation Actually Improve Your Finance?

[nomad]

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.

 

[Stardom22]

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]

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

 

[Stardom22]

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]

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]

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

 

[Sawe]

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]

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.

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]

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.

 

[Rubz]

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.