Nobody would say that these are not difficult times, considering the current state of the economy and that nobody could say how long this will last, it is not surprising then to see people searching actively for debt management programs in order to get their finance in line, it seems that debt consolidation is the most popular among the different alternatives, but is debt consolidation an effective solution to get rid of debt, in the shortest span and with lowest costs associated?, plus is there any risk involved? Yes, debit consolidation is undoubtedly an effective way to get rid of debt, because you take all your debts into a larger loan that, with a lower and unique monthly payment, plus a lower interest rate that is negotiated by your debt advisor, and a longer repayment span that can go up to 6 years, makes easier the managing of your finance, another important benefit is that by paying on time your rebuild your credit.
However, debt consolidation loan need a guarantee, usually your house or other assets as collateral, then if you are turning unsecured debt, and because of the loan, now is secured debt, that is a decision that needs to be thoroughly analyzed with your debt counselor.
As you can see, there several advantages and a few risks that need to be considered, specialized advise is priceless in these situations.
Last, consider other debt management programs such as debt settlement or debt negotiation, these programs have interesting advantages as well.