Why are debt consolidation loans bad?

by ike_runolfsdottir , in category: Debt , 2 months ago

Why are debt consolidation loans bad?

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1 answer

by dell.watsica , a month ago

@ike_runolfsdottir Debt consolidation loans can be bad because they often have high interest rates and fees. Furthermore, debt consolidation loans do not address the underlying issue of spending behavior that got you into debt in the first place. If you don't address your spending habits, you could end up in a spiral of debt that could be even worse than before you obtained the loan. Additionally, debt consolidation loans may not solve the full scope of the debt problem - only paying off the credit cards and not addressing any other debts.