You should consider the following points to determine whether debt consolidation or other such debt management solutions will be suitable and beneficial or not.
Firstly, are you earning insufficient money as income? How do you determine this figure? Make a list of all your expenses. Do not to be unrealistic and expect your family to survive without any entertainment or luxury expenses whatsoever.
If you have the habit of eating out regularly, provide for restaurant expenses for at least four times in a month. The basic idea is to find the maximum amount you need to lead an enjoyable life. If you fall short of cash, you can always reduce your luxury and entertainment expenses.
Compare the resulting figure with your income and find out whether you are earning sufficient income or not. If yes, you should find out the reason behind your debt problems. Did you incur any sudden impulsive expenditure which is putting strain on your finances? Or, have you faced a financial emergency that you did not plan for? Whatever maybe the reason, you should make sure it has nothing to do with your income expenditure gap.
If you have sufficient income in your hand, going in for debt consolidation loan to reduce the interest outflow and get a 5%-10% discount on the total amount may make all the difference to your money problems.
It will also help you manage your debts better because you will end up with a single unsecured debt and the secured loan on your house and automobiles. Lower the number of debts, easier will it be to keep track of your financial options and take quick decisions.
If you do not fit the description provided above, you should not go in for debt consolidation or other debt management solutions. If you are undisciplined with your finances, no solution is going to teach you discipline. That is something you will have to inculcate on your own.
If you are not earning sufficient income, no amount of debt co nsolidation is going to work unless the reduction in interest rate br ings the debt down to manageable levels. If you have a $5000 gap between your income and expense, a consolidation loan is not going to help.
When the situation is becoming drastic and when you are becoming more and more frustrated, you should contemplate options like debt settlement. This solution will help you reduce the total amount owed and bring it down to manageable levels.
If you are over $10k in unsecured debt it would be financially prudent for you to consider a debt settlement. There are organizations that exist called "Free Debt Relief Networks" that are a great place to start in locating legitimate debt settlement companies in your region. They provide free debt help and know where to locate the top performing debt settlement firms. To get free debt help check out the link below:
Free Debt Help [http://www.freedebtreductionhelp.com].
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