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Discover the secrets Why does Debt Consolidation often fails?

Debt Consolidation works if you commit the improvement in cash flow to accelerate your debt!

If you are figuring out ways to reduce debt, chances are you have heard of debt consolidation. It is one of most popular debt management methods where multiple high interest debts are combined into a single loan with one affordable monthly payment. The idea here is to lower your interest rates to make your debt manageable and easier to pay.

But before you make the decision to consolidate your debts, it is important to know the advantages and disadvantages associated with it. On the plus side, if you have high interest loans, they can now be consolidated into a single debt. What are the other advantages?

  • Reduces monies spent on interest
  • Enables you to have one low monthly payment, versus many
  • Decreases your monthly bill payments

Sounds great, doesn’t it? Before you consolidate your debt, let’s look at the disadvantages.

  • Consolidation loans are a bandage. This type of loan does not solve long term financial problems.
  • Debt consolidation makes it easier to accumulate more debt. With more money left over at the end of the month, many people start using their credit cards again and continue with poor spending habits.
  • Debt consolidation costs more in the long term, even though the interest rates are lower. If the loan is taken over a thirty-five year period, one may end up spending more money than if each individual loan had been kept in place.
  • Debt consolidation loans take longer to pay off.

How to make Debt Consolidation work for you?

Debt consolidation loans work well for individuals who stop relying on credit to pay the cost of monthly living expenses and develop a budget that they are able to manage. And who remain dedicated to educating themselves on the topic of money management, change their attitudes about money, and align behaviors accordingly.

Ultimately, it is all about putting your financial house in order and increasing your cash flow.

  • Are you at your financial crossroads with no idea which way to turn?
  • Have concerns about whether debt consolidation will work for you?

We can create the financial plan that guarantees your success with debt consolidation. Talk to us.

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