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Debt Relief – Insolvency – Bankruptcy Information » Debt Consolidation and Refinancing » Do you recommend to use debt consolidation?

Do you recommend to use debt consolidation?

is it recommended to use debt consolidation these days?


  1. i need to get out of debt – how do debt consolidation companies work? and do u recommend them? i have combined credit card debt of like 7000 and i am not being able to make payments. i need...

  2. Who do you recommend for a good debt consolidation service? Any personal experiences? I have approximately $15K in various credit card and hospital bill debt. I am looking for a good company that...

  3. Where can I find a personal debt consolidation loan for people with bad credit? I am in dire need of a debt consolidation loan and I have bad credit. I can make things work...

  4. Eliminate Debt Fast Without Bankruptcy Or Debt Consolidation Learn How I Eliminated $83,407 Of Unsecured Debt In Only 45 Days Without Filing Bankruptcy Or Using Any Type Of...

  5. What is a reputable debt consolidation company? I fell behind on my credit cards when I had an emergency medical expense. Even though I have a steady...

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5 Responses to "Do you recommend to use debt consolidation?"

  1. Scott says:
    Well, it’d depend upon your debt situation about which I’m not aware of. It wouldn’t be right to comment on things like this without more information since wrong suggestions may adversely affect your future financial health. Anyway, consolidation of debts is possible but it’s not free from its negatives too. Do as much research as you can before making up your mind on it.

    You may check with the source link for more information.

  2. Sgt Big Red says:
    I myself would not recommend this course of action. You are simply piling more debt on top of what you already owe. Consolidation is basically just another term for borrowing money to pay off debts and many of these firms have been known to collect funds and not pay anybody and other shady dealings.

    You would be far better off if you were to seek credit counseling from a reputable organization. This is also called a DMP (debt management plan). You will have to pay a small fee and if your income meets certain guidelines, you may not pay anything.
    Credit counseling simply means you add up what you owe, take your income and deduct living expenses, what you have left is what you can afford to pay. The counseling agency then works out a payment plan and pays your creditor every month.
    NOTE: only problem being is that you will have to close your accounts which means no more credit until your debts are satisfied.

    Here is a link to the FTC regarding DMP’s and what to look for when picking one.

    Also, contrary to what some say, credit counseling is NOT reported on ones credit report (see source).

    Hope this helps answer your question.

  3. Mia Jacob says:
    Debt consolidation loans transfer debt from one place to another. While this may sound good, since many times it can appear to lower your monthly payments, a debt consolidation loan will not reduce the amount you owe.

    Debt consolidation is right for some people, especially those that are not at risk of falling behind on their new consolidation loan and who have the discipline not to charge back up the credit cards that now have empty balances and available credit. However, if you are struggling to make your payments, you should consider debt reduction, not debt consolidation. This way you are dealing directly with the problem, not temporarily avoiding debt problems.

  4. says:
    I agree that you should try to seek help from a debt counselor or a debt management company if you can find a reputable one you can trust, because there are many unscrupulous ones.

    If you can get a debt consolidation loan where the interest is lower than the interest on your credit cards or personal loans then it might not be a bad idea to go that route. Just remember to take whatever you will be saving monthly after getting the debt consolidation loan and put those savings into the loan so that you can pay it off quicker and save on interest.

  5. Johanne C says:
    Debt consolidation could lower your monthly payments. But in order to do this, your loan term could be stretched which will make you incur a larger overall interest cost.

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