What is Debt Consolidation?
Debt consolidation is a form of debt refinancing that entails taking out one loan to pay off many others. This commonly refers to a personal finance process of individuals addressing high consumer debt,
but occasionally it can also refer to a country’s fiscal approach to consolidate corporate debt or government debt.
Best Debt Consolidation Companies In South Africa
Blue Oak Systems.
Paragon.
Debt Rescue.
Debt Busters.
Consoli Debt.
How do I know if a debt consolidation company is legit?
Looking up their reputation with the Better Business Bureau (BBB) and checking for any complaints filed with your state’s attorney general is a great start. Compare multiple offers: Don’t take the first offer you see.
What risk does debt consolidation bring?
The biggest risks associated with debt consolidation include credit score damage, fees, the potential to not receive low enough rates, and the possibility of losing any collateral you put up.
Another danger of debt consolidation is winding up with more debt than you start with if you’re not careful.
What happens to all the debts with a debt consolidation loan?
Debt consolidation means that your various debts–whether credit card bills or other loan payments–are rolled into one loan or monthly payment.
If you have multiple credit card accounts or loans, consolidation may be a way to simplify or lower payments.