Home » Finance » Debt Consolidation

Is Debt Consolidation The Right Choice For You?

Mar 14, 2008
The process of debt consolidation allows a number of smaller bills to be rolled into one payment that is made monthly. The result is a lower payment and usually a reduced interest rate. For this to happen, a variety of debts are consolidated, which might include medical bills, dental bills, credit card bills, or other types of unsecured loans. With debt consolidation, your finances have become easier.

Keep in mind that for debt consolidation, another option is to reduce interest and monthly payments on credit card bills but only by getting a secured loan. Of course, the actual process for debt consolidation, as well as the options offered, will depend on the institution with which you work. Even so, who are the people that would benefit from debt consolidation?

Having a better idea of what debt consolidation is, we wanted to see if you are someone who would benefit. To make this determination, you need to ask yourself a few questions.

Are you currently making timely payments on all of your debts? If you can easily make the minimums on the credit cards and monthly payments on all of your debt, then debt consolidation may not be for you. Then again, if it is possible to lower your interest rates, wouldn't it be nice to stash some cash back in your wallet? Debt consolidation isn't just for individuals and families who are behind or barely scraping by with the bills. It can also be a valuable way to get out of debt quickly and easily.

Ask yourself if you have any money left over for entertainment, dinner, or meeting up with friends after you pay your debt. We all know that money cannot be spent freely for a long time before debt starts catching up. One thing that many people overlook is providing a place in the budget for fun. You need to have an outlet and without one, the risk of overspending and impulse buying increases.

You need to pay your bills but you also need to understand all of your expenses, compared with your income. With this information, a good budget can be created, showing you whether debt consolidation might work in your case.

Are interest rates dropping? Another reason to consider debt consolidation is the interest rates. If interest rates are dropping, it may be advisable for you to consolidate debt. Regardless of your budget and ability to pay more than the minimum payments, if it is possible to secure a great interest rate, then by all means, go for it.

Most consumers would highly benefit from a debt consolidation. We suggest you start by analyzing your current financial situation, along with the interest rates being paid. The more you know about your finances the better chance you have of making changes. Of course, if you discover that a debt consolidation loan is a poor choice at this particular time, you can always re-evaluate your situation in six months to a year to see if it would work better then.
About the Author
Wonder whether debt consolidation is the best answer to your debt problems? Visit the Debt Smackdown website for more helpful information at www.DebtSmackdown.com
Rating:
Please Rate:
(Average: Not rated)
Views: 128
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources