Debt Consolidation loans often fail because they don’t address the cause of one’s debt. These loans simply reduce the negative symptoms caused by bad debt without actually treating the related causes such as poor money management skills, and the absence of a budget.
Generally speaking, many people who consolidate their debts will manage to build a sizeable debt load within twelve to eighteen months after taking that loan. Often they end up in the same financial situation they were before. Sounds familiar, doesn’t it?
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.