How to Make the Most of a Debt Consolidation Loan

by Hank Coleman

Make the Most of a Debt Consolidation LoanHave you ever had a debt consolidation loan? Have you ever thought about getting a consolidation loan to clean up some credit cards with high interest rates or to bring several small debts under one monthly payment?

There are a few things that you should consider if you are going to get a debt consolidation loan. I recently wrote a guest post on badcredit.org, “How to Make the Most of a Debt Consolidation Loan“, where I listed the three ways that you can maximize your debt consolidation loan and never get into debt again.

Three Ways to Make the Most of a Debt Consolidation Loan

  1. Look at your spending habits
  2. Don’t shuffle money around
  3. Throw more money at the consolidation loan

You have to look at your spending habits when you are thinking about a consolidation loan. Another thing to consider is that you are really just moving money around with a debt consolidation loan instead of tackling the real problem as to why you’re in debt to start with.

There’s always a thought that you’re throwing good money after bad when you simply consolidate debt. Is this the case?

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Do you want to learn more about the details of these three very important ways to get the most out of a consolidation loan? Be sure to check out my guest post on badcredit.org.

You run the risk of falling back into the same debt traps that got you into debt in the first place if you are not careful with your spending. You don’t want to rack up more debt after a loan.

Have you ever had a debt consolidation loan? Did it work for you or did you lapse back into bad habits afterwards? I’d love to hear your thoughts in the comment section below.

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About Hank Coleman

Hank Coleman is the founder of Money Q&A, an Iraq combat veteran, a Dr. Pepper addict, and a self-proclaimed investing junkie. He has written extensively for many nationally known financial websites and publications. Hank holds a Master’s Degree in Finance and a graduate certificate in personal financial planning. Email him directly at Hank[at]MoneyQandA.com.


Hank Coleman has written 581 articles on Money Q&A. Learn more about Money Q&A on Twitter @MoneyQandA and @HankColeman.


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{ 2 comments… read them below or add one }

Joshua Rodriguez

Hey Hank, thanks for the great post. Debt consolidation can definitely be tricky and it’s important to make the most of the option if you go for it. I’m going to go check out the guest post you mentioned and see if I can find something juicy to talk about in my next consolidation post. I’d love to see you in the conversation at CNA Finance, drop by and share your thoughts if you don’t mind! Anyway, thanks again for the great post!

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paulkim

Hi I would like to explain difference between refinancing and debt consolidation. It’s not unusual for many to fail to distinguish between refinancing and debt consolidation. Some misunderstanding creeps in when people get their home refinanced and simultaneously go for a debt consolidation too. An understanding of the merits and demerits of each, helps deciding the most appropriate option for your current status.

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