Just like any option, debt consolidation is not applicable to all people. If you fall under any of the following categories, it would be a smart choice to look for an alternative.
You are not the one handling your finances
If you are the type of person who loves to spend money on shopping, debt consolidation is nothing but a scapegoat to your money-spending. People who similarly do not have enough resources to pay their debts also fall under this category. Above all, if you are the type of person who feels good in spending money on anything, it is prudent to think of other ways.
Under debt consolidation, the abovementioned group of people will only incur more debts other than addressing their debt concerns. This is why most financial advisors would advise that these people look for alternatives.
The credit score is low
If there is the best time to do a debt consolidation, it would be if a person’s credit score is high. The reason for this is that if a person’s credit score is low, it is unhealthy to snag a reasonable interest rate. When a person’s credit score is low during the application process, chances would be to incur more interest rates.
But do not get disheartened. If you badly think debt consolidation is the only way to go, it is prudent to wait until your credit score gets high. This way, you will be able to incur lesser interest rates.
You only care about paying monthly
An extended repayment method is not always a win-win situation. Under debt consolidation, the longer you pay your debt, the more interest it incurs. This is why most lessors would often advise debtors to choose a shorter period. This way, the interest rates are low, and it would not be hard to pay.