There are multiple advantages of acquiring a debt consolidation loan to take away nearly all your financial worries. The prospect of having these worries solved in almost no time may seem a luring idea, but you need to make sure that you are completely at the dead end, before finding yourself a company, which help you in the debt consolidation process.
Therefore, you should consider a number of factors before you take the drastic measure of taking out a secured loan to pay off those mounting debts.
You may consider a few alternatives to debt consolidation. Take responsibility of your actions and try to make new arrangements with your lenders. Try to persuade your creditors to lower their interest rates, so that you can make your payments easily. Moreover, talk to them of extending your credit period, and lessening your monthly payments.
You should also see if you are making use of the credit facilities you can possible have, a bank loan with your primary bank, an overdraft facility and credit cards. If you are not, perhaps you can use that one to pay for the debts in the meantime.
Additionally, you can have nice ideas to have more income. Try to get two jobs. Try to find jobs on the Internet, even though they pay a piece rate, but every bit counts when your creditors are calling you at office, at work and following you everywhere. Increasing your income may be the best solution.
However, if all fails, then you can always ask your parents to lend you some money, or ask a rich relative, who may help you out in these troubled times. The likelihood is that your debts will be paid off, and you will have to return that payment to the relative with no interest. This means that you will just pay the relative the money he gave you and without any interest.
If all of this does not work out, you should go to a debt consolidation company. You will have no option at this point!