subject: Debit Consolidation - Is Debt Consolidation the Right Solution For My Financial Situation? [print this page] Debit Consolidation - Is Debt Consolidation the Right Solution For My Financial Situation?
A person should always consider the following points to decide whether the debt consolidation or any other debt management solution will be suitable and favorable or him or not. Firstly, it is important for the person to figure out whether the he is earning sufficient income or not. A person can find it out by making the proper list of all his monthly expenses. Do not try to be unrealistic and oblige your family to live without luxury and entertainment. If you are habitual of dining out on regular basis, then estimate the entire amount that you spend on dining out.
In this way, you will get the idea that how much money you need to spend for an enjoyable life. If you are facing the problem of limited cash, then try to minimize your entertainment expenses. Compare all the list of the expenses with your income and find whether you are earning enough income or not. If you are earning enough, then you will be easily able to resolve your debts. But, if the income is less than the monthly expenses, then it will not be that easy for you. You will really have to put a lot of efforts to come out of the burden of the debt.
If you are earning sufficient monthly income, then going for debt consolidation loan to reduce the amount of interest and easily get 5% to 10% discount on the total amount which will really help you in getting rid of your financial problems. Apart from this, it will also help you in settling your debts because with the help of debt consolidation you are able to end up with only one unsecured debt. Lower number of debts will help you to come out from the pool of debts in a very short span of time.
If you feel that you are not getting fitted properly in the above mention information, then it is an advice not to go for debt consolidation. If you are undisciplined with your income and expenses, then no method can assist you in this regard. This is something that will you have to do on your own.
If situation is gets more worst for you and you are unable to take the proper benefit of debt consolidation, then it is an advice to concern other debt relief options like debt settlement.
Debt settlement is the best alternative to bankruptcy and usually makes financial sense for consumers with over $10k in unsecured debt. Consumers can expect to eliminate 50% of their unsecured debt on average.
