Our Family World

A blog about you and your family!

  • Pregnancy
    • Conception & Fertility
    • Labor & Birth
    • Pregnancy Announcements
    • Pregnancy Tips
    • Teenage Pregnancy
  • Baby
  • Family
    • Childhood Obesity
    • Family Entertainment
    • Family Health
    • Family Pets
    • Family Technology
    • For Mom
    • Gift Ideas
    • Health
    • Kids Entertainment
    • Parenting Tips
    • Relationships
  • Travel
    • Places to visit
    • Travel Tips
  • Recipes
    • Cooking Resources
    • Easy Recipes
    • Holiday Recipes
    • Low-Calorie Desserts
    • Recipes for kids
    • Reviews from Kitchen
  • Holidays
    • Back to School
    • Christmas Ideas
    • Easter Ideas
    • Father’s Day Ideas
    • Halloween
    • Holiday Gift Ideas
    • Mother’s Day Ideas
    • Summer Ideas
    • Thanksgiving
    • Valentine’s Day Ideas
  • Bullying
    • Bullying Causes
    • Bullying Consequences
    • Bullying Prevention
  • Money
    • How to save money
  • For Home
    • Crafts
    • Home Organization
    • Home Tips
    • Parties & Holidays
    • Vehicles
  1. Home
  2.  > 
  3. Money Matters
  4.  > 
  5. Debt Consolidation Loans: The Good and the Bad

Debt Consolidation Loans: The Good and the Bad

  • Facebook
  • Twitter

debt-consolidation-loans-pros-and-cons

Consolidating a debt is to take out one single loan to take care of several other debts. Getting into debt consolidation loans is common and people do it all the times. But one should know the pros and cons of these loans before taking them out so that they know what they are getting into.

The Pros and Cons of Debt Consolidation Loans

The Good

The debt consolidation is helpful if you have high interest installment loans to take care of. You can turn all those high interests into one manageable payment. You can easily take care of extra charges and avoid late fees. Managing your finances gets much easier as you know what is getting paid and when. You may also enjoy a reduced interest rate on a debt consolidation loan. Credit cards loans being unsecured carry a higher rate of interest and an average American is paying off debts to more than10 different creditors every month. Making one single payment is much better than paying out separately to different creditors. As the interest rate is low on these loans, your monthly installments get lower too and become more easily manageable. Moreover, as you have only one creditor to deal with, things are easy to manage and understand. This simply makes controlling and managing your finances better. The interest paid to a mortgage is a tax write-off too.

The Bad

Now that we have seen the good side of the Debt consolidation loans, let us take a look at its downsides too, to get the real picture. It will take some effort to find out fair interest rates. After all, it won’t make much sense if you are paying higher interests on your Debt consolidation loans too. The length of the term too should be taken into consideration as this could leave you paying more money in terms of interest. With loan installments getting easier, people often tend to get tempted to use their credit cards again and continue with their bad spending habits. Even though the interest rate is less on these Debt consolidation loans, you still end up paying more in the long run. As debt consolidation loans are secured loans, you will lose whatever you have secured in case you are not able to make the payments.

Thus, you must look at the pros and cons before taking up debt consolidation loans. Thus, these loans are not for everyone and one must take a look at all the pros and cons before going in for these loans. It is best to contact a financial professional who can have a good look at your financial situation before taking any step.

 

Tips for Planning for Your Child’s College Education

Tips for Planning for Your Child’s College Education

As we head into the holiday season it is time to start considering how we will pay for gifts for our friends, family and even ourselves. Here are 5 Ways to Make Extra Money for the Holidays that are sure to be easy for you to do

5 Quick Ways to Make Extra Money for the Holidays

Should You Pay Off Debt Of Your Future Spouse

Marriage Money Tips: Should You Pay Off Debt Of Your Future Spouse?

Want to teach your kids about money? Check out these easy ways to use an allowance system as a financial educational opportunity!

How to Setup and Use an Allowance System to Teach Your Child About Money

About Olfa Turki

Olfa Turki is a chartered accountant, a wife and a mom! She loves cooking with the kids, biking, reading books and drinking lots of coffee! Olfa now balances her family life with ownership and backend administration of websites such as MyKidsGuide.com, DogVills.com, LoveYouWedding.com .

Comments

  1. Nicole B says

    This is some great information! It’s really good to hear both sides of it!

    Reply
  2. Barney says

    Also, I knew my job like the back of your card or companies
    and tell them that you died. But, in the example above.

    Think about it this way: the massive fiscal response to the
    growing number of Americans who need the benefits of
    this horrible recession. The process doesn’t work if you have been running after the consolidateor in court than it is today. If the individual is willing to do that.

    Reply
  3. mel says

    What great tips!!! I love that you took it from both sides!

    Reply
  4. Amanda @ Guide For Moms says

    I sure do not envy anyone that has to go through Debt consolidation. I did it once and this is great information to know beforehand!

    Reply
  5. Jeannette says

    Great tips – I like that you looked at both sides. I think this is a great service for some people in the right situation.

    Reply
  6. Tosh says

    This is a great article about debt consolidation. It’s good to know both sides before deciding if this is best for you!

    Reply

Leave a Reply to Jeannette Cancel reply

Your email address will not be published. Required fields are marked *

Follow Us

Related Posts

Save money and get financially fit this year

How to Get Fit Financially and Save Money

Planning on buying a new house? Before you start, learn from these five mistakes I made when I bought my first home! You'll thank me later!

Mistakes I Made When I Bought My First Home

Relationship Money Issues: Should You Split Expenses With Your Spouse?

Should You Split Expenses With Your Spouse?

Thinking of renting a car once in a while to get around the city or take a vacation? Check out our tips on how to save money on an occasional car rental!

How To Save Money On The Occasional Car Rental

Unique Fund Raising Ideas

Unique Fund Raising Ideas To Support Your Cause

About Us | Privacy Policy | Contact Us


Our Family World ©2018 - All Rights Reserved

As an Amazon Associate I earn from qualifying purchases