Debt consolidation is a way to make your many different debts become one, therefore allowing you to be responsible for just one payment a month instead of say, ten different debt bills. As with every decision in life there is an upside as well as a downside with consolidating your debt. First, there are many benefits to having just one creditor to make payments to. Debt can be overwhelming as it is, and when you have a handful of payments to make all on different dates that can be even worse.
Keeping track of when and what is due is a lot, especially when ten different ones are spread throughout the month. Consolidating your debt will then allow you to make one payment to a creditor alone, and it will also keep you from receiving multiple calls from the creditors throughout the day. One creditor is better than many, when it comes to phone calls about payments.
On the other hand, consolidating debt also has its disadvantaged as well. The main thing is the fact that the time period of making your payments will likely extend since they have become one debt instead of many smaller ones. Even though it will take you longer to make the payments, the interest may be much smaller and what you will actually pay per month will be a lesser amount as well. Though because of that, what could have been 2 years of debt could turn into 5 or more in order to pay it off.
While debt consolidation is an option for those struggling with debt, filing for bankruptcy is also another common option, one that protects individuals from creditor harassments. If you have any concerns or questions regarding your debt or filing for bankruptcy, contact Malaise Law Firm today!