6.  You are overlooking unexpected emergencies.

 

There are some things which are not under our control.  Any thing can happen.  You could get hospitalized or lose your job. These are things we might fail to anticipate when in a debt consolidation program.  This could be very disadvantageous on your part because it can impair your ability to make your required payments.  Consequently, it can hurt your credit. 

 

7.  It can take you longer to pay up your debts. 

 

What's tempting with debt consolidation is that you can ask for an extension of terms in loan payment. This actually contradicts what these consolidating firms also claim settling your debts quicker than with unconsolidated bills.  What you don't realize is that it can take you longer to pay your bills and you might even pay more than what you owe.

 

8.  Debt consolidation can be expensive.

 

When you hear a very, very good offer, beware.  It might be too good to be true.  The idea of consolidating your bills appears to be stress free.  However, borrowing money from these firms will most probably cost you something. Although you might not take it right out of your pockets, the funny thing here is that, they would be more than happy to lend you more money so you can settle the payments they require you to make. 

 

9.  Do not be fooled by debt consolidation.

 

Most of us may be guilty of this.  When you start to pay less on your debts every month, you confidently tell yourself, "I can get a new car now that my expenses have lessened."  That is very, very wrong.  Until you have finished with paying off your debts do not spend on things you do not really need.  It can get you back on the payment-debt treadmill all over again.

 

10. Lack of self-discipline.

 

This is the ultimate disadvantage one has to deal with when considering debt consolidation.  They always perceive consolidation as a solution but they never see or even check on their own spending habits.  The indebted individual is definitely a huge player in this circumstance.  If changes do not start with the person, there is definitely no chance of redemption from debt. 

 

You cannot get anything in this world for free.  Some things may sound good but you have to remember that there is always something bad about it too.  Do not be easily fooled by things you hear.  Examine the whole situation before entering into something you think can pull you out of debt.

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