A debt consolidation loan is a very bad option for any borrower who expects to have problems consistently making the payments. Additionally, if you have a secured debt consolidation loan such as a home equity line of credit, you can end up putting critical assets at risk.
Before you decide to take out a debt consolidation loan, you should talk to a trusted financial advisor. A trustworthy expert can analyze your debt situation and help you make the best decisions about how to deal with all your outstanding debts. A financial advisor can determine the best options for you to manage your debts without destroying your credit rating in the process.
Be Patient, and Always Consider Alternatives
A debt consolidation loan will definitely have an effect on your credit; all borrowers must determine whether that effect will be good or bad.