debt consolitation

Debt consolidation is a last resort for some, and the best saving route for others. What does it mean to you? Debt consolidation is read by the credit bureaus as a negative; the fact that you need to consolidate your debts in order to repay them, means that you have not planned your finances well, and therefore have created risk for your creditors.

On the other hand, debt consolidation can teach some very valuable lessons.

1. You need to think ahead. Most people fall into the debt trap because they live for the present. They buy impulsively; they don’t save; they don’t pay their bills on time. Debt consolidation is a time when you are forced to sit down and chalk out the future of your finances.

2. Live within your means. There is no magic wand that will make your loans disappear; there will be no lottery that will suddenly give you all the cash you need to square up your debts. Debt consolidation will teach you that you should – and can – live within your means.

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