Debt Consolidation

“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.”-Ogden Nash
The desire for Debt freedom necessitated the birth of debt consolidation services.
Debt consolidation is a personal Refinance strategy used in reducing high-interest debts into lower interest debts in other for easy repayment with the objective of being debt free. The purpose of debt consolidation is to aggregate all debt into a single lower interest debt whose payment is spread over sometime for ease of payment. These articles explain how debt consolidation works, when to consolidate your debt and when not to consolidate your debt.


There are several ways to consolidate a debt and make its repayment simple and seamless. however, in this article, i will focus my attention on the two primary ways in which to consolidate your debt:

1. Debt can be consolidated by getting a 0% interest balance transfer credit card:

Balance transfer credit card is a system that allows for the transfer of existing your debt/loans from one or more cards into a new card with lower interest charges for examples savvy consumer use this method to consolidate their debt by taking advantage to reduce interest being paid on existing debt into lower interest via the new card.

2. The second primary debt consolidation method involves getting a fixed-rate personal loan:

This method of debt consolidation involves a consumer securing a lower interest personal loan and using the loan to repay the unsecured debt while spreading the repayments of the personal loan over a period. A personal loan can be secured from various sources and it’s always advisable to use the service of a professional in other to cross the T’s and dot the I’s.


Before consolidating your debt, It is advisable to carry out some checks in other to get value for your money and effort. Debt consolidation is not a one size foot all solution, Debt consolidation will not necessarily get you out the desired freedom if you are not willing to do the necessary adjustment and self-discipline required going forward.

Debt consolidation should be considered if:

A. Your total debt is less than 50% of your income.
B. Your credit rating is good and can qualify for a 0% credit card or low-interest debt consolidation loan.
C. You have a cash flow that consistently covers a repayment of your debt.

Debt consolidation should be jettisoned and other options should be considered if:

A: If your debt load is small and you can finish repayment in less than six months.
B. If your total debt is more than 50% of your income thus making it impracticable to finish your payment in 5 years.

Debt settlements companies are an organization that assists individuals/organization to draw up a strategic plan for the consolidation and repayments of their debts, It is always advisable to use these organizations because they offer the best advice.