Cons of consolidating debt
But if you switched majors, transferred colleges, or went on to graduate school, you may be among the 19% that owe ,000 and above, or the 5.6% who owe more than 0,000.Chances are if you’re dealing with student loan debt, you’re not just dealing with one loan. And if you couldn’t cover the costs with federal loans, you very well may have turned to a private lender, such as a bank or other lending institution (e.g., Sallie Mae) to fund the rest of your expenses.Some people prefer a debt management plan, while others benefit from simplified singular payment of a consolidation loan.It all depends on the person and the type of debt they’ve accrued.
First, it helps you work out a plan to consolidate and pay off your debt.
Many who seek debt consolidation do so because they are not able to manage their finances on their own.
When finances spiral out of control, many consumers make late payments to creditors or stop making payments altogether.
Working with a debt consolidation company can give you a sense of accountability.
Jenny Mc Cune for says that debt consolidation treats a symptom, but doesn’t fix the problem, which is your spending habits.