What Should I Be Wary of When Consolidating Debt?

What Should I Be Wary of When Consolidating Debt?

Consolidating your debt isn’t an easy fix. While it’s often a smarter way to manage your debt and could help you pay off your debt sooner, you do have be aware of the fine print.
Things to look out for:
Check that your new interest rate is lower than what you are currently paying; otherwise you may end up finding yourself in more debt.
Don’t forget to take the fees and charges into consideration.
If you have organized a balance transfer that has a low rate, or no rate, introductory period, ensure that you check what the interest rate is after this period ends and bind to paying off your debt in the course of the intro period.
Be cautious when creditors offer ‘credit fix’, ‘credit repair’ or ‘debt solution’ and charge a fee on the declaration they will increase your credit rating. Credit card defaults are robotically marked against your name and cannot be removed unless you evidence it is inappropriate.

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