Is consolidating debt a good idea amber benson dating andy hallett
She had made several unnecessary purchases, signed onto a bunch of new credit cards, and bought a house all at the same time.Her husband tried to help, but he also brought along his own debt when they got married.Lorraine didn’t quite understand the process, and the company? “They failed to communicate clearly with me,” she says.“I thought I was chipping away at the debt, but it just grew and grew.” Lorraine and her husband decided to turn to another debt consolidation company for help.If you don’t want to pay more, then it’s time to consider other options.This could include changing your spending habits or seeking help from a financial planner to see what your options are.Yes, you may be lowering your monthly payments, but that doesn’t mean that you’re paying less interest overall. Because making lower payments (even with a lower interest rate) may mean the term of your loan has been extended – so the amount of debt you have hasn’t lowered, and you’re taking longer to pay it off.Not only will you be in debt for longer, but you may end up paying more in interest because of the longer loan term.
“I can honestly see how people who take their own lives feel,” Lorraine says.
“It was a definite feeling of, ‘How low could I go? When it got unbearable, they sought the help of a professional.
’” Lorraine was understandably very emotional during the whole ordeal. She completely trusted the company, but that trust backfired.
» MORE: Follow these 3 steps to pay off debt Two additional ways to consolidate debt are taking out a home equity loan or 401(k) loan.
However, these two options involve risk — to your home or your retirement.