subject: Some things to consider before getting a debt consolidation loan are as follows: [print this page] Some things to consider before getting a debt consolidation loan are as follows:
- Find out how much money will be saved each month by getting the
loan. If you are not going to be saving or if you are going to end up
paying more each month, then it probably is not a good idea.
- Look at the length of time left on each debt. If you only have a
couple months left to pay on some debts then it would probably not be
in your best interest to consolidate them. Consolidating will extend
the length of time you will pay. It would be easier to pay off those
debts and consolidate only the ones with a long length of time left.
- Check into how much the debt consolidation loan will cost you total
and compare that to how much your debts are going to cost you. You
should save with the consolidation or it may not be worth it.
Basically when it comes to debt consolidation you have to think smart.
It may seem great to consolidate to get one bill every month instead
of numerous bills.
You may save money up front each month, but overall you have to look
out for what is good in the long run. Dont be too quick to consolidate
if you will not benefit in the end, you do need to look at the bigger
picture.
For example taking out a secured loan could really slash your monthly
payments and provide a quick fix, but in the long run you may well be
paying back a lot more.
That said however a secured loan could be a quick solution, as you can
pay off the loan when you come to remortgage. This is great because
secured loans have very small early repayment charges. You have many
options, so make sure that that you study each one carefully.
