Although many people think of scams and being ripped off when they think of debt consolidation loans, there are actually many reputable companies out there all offering the same basic solution to a person’s debt problem. So let’s take a closer look at “Is Debt Consolidation a Good Idea?”
If you have three loans that were all taken out at different times and have differing balances, and you lump them all together so that you only have one loan instead of three, it is known as debt consolidation.
Debt management is not quite the same thing, and some companies rather misleadingly call themselves debt consolidation companies when they are really just managing your debt.
Unfortunately, many consumers simply do not realize there is a difference between the two terms, and some unscrupulous companies call themselves consolidation companies as they know that is what consumers are looking for. If you are looking to consolidate date, the following information may help you to determine if this is the right approach for you.