Before you select debts consolidation process, please take note of the following disadvantages of debts consolidation.

1) Longer Debts Payment – instead of many short term loan, you loan tenure has been extended, that means you are in debts longer.
2) Higher Interested Rate – Depends on your financial rating, you may have to settle with a higher interest rate. You end up paying more than your current loan.
3) More debts in the future – you clear your credit card debts and regain your credit, you may start spending again, that will makes your financial situation worst.

Debts Consolidation Alternative

Is there any alternative to debts consolidation ?

The answer is yes.

First you may want to consult a financial advisor to understand your actual financial health, we called it a financial health check.

Once you understand your current situation, you may negotiate with your current debts holder for a better interest rate, waiver of penalty fees or longer payment tenure.

If you have a numbers of credit card debts, you may want to consider moving the outstanding balance it to a single credit card for better management. There is a lot of credit cards offer low or even free interest rate up to 6 months.

Getting out of debts is a long process, you need both financial support and well as strong mental strength to get you out of trouble.

If you are debts free or your debt is under control now, congratulation! Please control your expenses, do not spend more then what you earn and most importantly, save before you spend.