Are Debt Consolidation Companies Worth it?

If you’re in debt, and you’re looking for a way out, the number one question you should ask yourself, is whether debt consolidation will work for you.

Does debt consolidation work in general? Are there specific debt consolidation companies in South Africa, that are more successful than others, and just who can you trust?

Upon deciding which debt consolidation company to choose, it is very important to do proper research on the company. Another thing that will be very helpful on your journey to not only finding the right company but also finding one that can provide you with the appropriate debt solutions, which in the first place, it the initial idea of applying for debt consolidation.

The process of debt consolidation with the right company

The first thing you’ll have to do is take out a loan application, which will involve a credit check. Now, this will decrease your credit score by a few points for about two years, so if you don’t have a problem with that, you can proceed with debt consolidation as a method.

Debt consolidation will allow you to receive a lump sum from the debt consolidation company, which you must repay to your smaller debts, which you have with creditors.

Debt consolidation also involves lower and higher monthly payments, to your debt consolidator, which allows you to pay your debt off, regardless of whether you can afford to pay a large amount or not. There is thus no fixed amount that you must pay, but you still must make regular payments to repay the debt consolidation company. Depending on the debt consolidation company you choose, they might require you to make a higher payment monthly, however.

Will you be able to manage your financial health with debt consolidation?

There are various ways to repay your debt. One should never feel like you’re stuck in debt or don’t have a solution to repay it. There is always some sort of solution.
Debt consolidation will help you get out of debt. It’s just about choosing the right company, one that is both trustworthy and has your financial-wellbeing at heart.