As the use of credit services and products is today widely accepted as a part of life, millions of people hold debt in the form of credit card balances, personal loans and various other products.
For many, accumulating debt is not a problem, as what they take on is easily manageable and they are able to meet their repayment obligations without trouble.
However, financial circumstances can change or people can quickly stack up debt without considering how they will cover their repayment obligations.
Should this happen, debt consolidation can seem like an ideal solution, but if it isn’t done with careful consideration and planning it can make your debt problem worse, or leave you paying more money to clear debts than you would have originally. Debt consolidation is not a debt solution in itself, but is rather part of a process individuals can use to manage their debt more effectively or work towards becoming debt free.