Like Ralph Waldo Emerson said “A man in debt is so far a slave.” Debt consolidation is the art of putting together loans from different institutions or persons into one lump sum; however it’s good to note that it’s not only the debts that are consolidated but the interest rates as well Debt consolidation comes in the disguise of a remedy due to the lowered interest rates once the debts are put together but the truth of the matter is that the term is extended meaning you remain in debt for a very long time which also means you end paying far more money than what you had borrowed.

The risk of staying in debt for long is the fact that most of your inputs will be to clearing off the debts. thus laying you off from any investments or saving money for emergencies. The bitter truth that this debt consolidation firms will never tell you is that; this does not change the fact you are “in debt” and how being in debt affects your credit score. This also puts you at a risk of losing your assets in case if you fail to clear the loan.

These companies will also charge extra fees for the services they lender. Remember that this is their business and they must earn from it As you work towards clearing your debts its good to learn the habits that actually put you into debt in the first place because in most cases debt comes as a result on overspending and no saving; there are various positive habits that one can actually adapt that will help you stay off debts like; living within your means; saving before spending; spending less than your earnings.

Its good to note that being in debt for long puts you at risk of even more debts due to the fact that; not having money for emergencies like accidents or ailments will lead you to borrowing and this is actually digging your financial hole more deeper and in a matter of time you might loose your grip. Note also that being in debt especially for a family person does not affect you alone but the whole family as well Avoiding using credit cards, as these have been the major reason people have sunk into debts; many firms and business will always have enticing offer that will seem irresistible but be on guard that they are in business and by your falling victim you keep them in business and they won’t stop coming to you if you default..