The best type of debt consolidation is when you don’t need to use it at all. Being out of debt gives you options and opportunities that are not available to someone who is under heavy interest payments for depreciating items.
Your ability to curb your spending will determine how well you can avoid the debt consolidation trap. It is better to start a financial plan early one before you get into trouble instead of waiting until creditors are knocking on your door and you are about to have your home foreclosed on.
Debt consolidation isn’t a free lunch. You will pay dearly for the time it buys you to try to get out of debt. People who consolidate huge amounts of credit card debt without changing their financial practices will only find them in a bigger mess a few years down the road.
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