Question:

Consolidation?

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my boyfriend is wanting to consolidate his loans & credit cards for one payment a month but we have heard that when you do this you can borrow extra money also...can you please give me some opinions on the best place to do this...i have read several things on the net but can't really find the best place to do this & be able to borrow extra money also...thanks in advance for your help!!

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  1. Firstly, why do you want a debt consolidation loan?  Is it because you are struggling with your finances? And is that because you are spending more than you earn?  Please don’t just automatically deny this and move on.  Look clearly - I know living is expensive, and you deserve some treats in life, but, and this is a big but: Debt consolidation will only help for a few months, soon you will be right back where you are right now, and sooner or later you will either have to adjust to spending less or earning more.  

    In a survey done by the Motley Fool they found that about 80% of people who took out a debt consolidation loan then went on the get into more debt, and started down the path of spiralling debt and real problems. This is the main reason to discourage these loans, they are a sticking plaster on a broken limb.

    But if you still want a Debt consolidation loan then here are some tips to get the best out of it.

    The people who are most likely to have the most success with their loan are those who have ruthlessly analysed their spending and have a plan of action that they follow after they get their loan.  Pay off your debts, cut up your credit cards and save up some money every month for unexpected events.

    Absolutely don’t take on a little extra debt for a holiday or some other indulgence.  A cheap holiday can be very expensive if added to a loan!

    If after all this you still want a debt consolidation loan - then look at this review site for the best ones available:

    http://www.onlinebestinformation.com/deb...


  2. base in the amount of your loan.

    it will much cheaper if you get the lower  interest rate.

  3. Consolidating so he can borrow more money makes no sense.  He needs to cut up thoses cards and focus on paying them off one at a time, either the one with the highest interest rate or the lowest balance.  If he can't pay cash, he can't afford it.

  4. Debt is debt whether it is making one payment or fifty payments. If your BF is struggling to make the payments he's got, taking additional money in a consolidation will add to the debt not reduce it. My suggestion is to either increase income and/or reduce expenses not to continue to add debt onto debt for the sake of convenience. He needs to pay what he owes in a logical manner by realizing his expenses and paying attention to his short and long term goals. The cycle won't end by using debt and credit. The most successful lives are those with written and obtainable goals. You can't reach your goals if you haven't set them. He's got to stop wanting what he can't afford. What happens if something happens to his job or health??? Bankruptcy!!!
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