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The Pros and Cons of DIY Debt Consolidation

Posted on 2023-04-13 17:06:12 by iNF
Finance DIY debt consolidation pros cons do it yourself consolidate debt
The Pros and Cons of DIY Debt Consolidation

Are you struggling to keep up with credit card payments or other types of debt? Consolidating debt is one option that can make it easier to manage. Debt consolidation is the process of combining multiple debts into one, with the goal of getting a lower interest rate and a lower monthly payment. Some people choose to do DIY debt consolidation instead of using a debt consolidation company. But is doing it yourself a good idea? Let's weigh the pros and cons.

Pros of DIY Debt Consolidation

1. Save Money: When you do DIY debt consolidation, you don't have to pay fees to a debt consolidation company. This means you can save money on the process.

Cons of DIY Debt Consolidation

2. You Have Control: When you consolidate debt by yourself, you have complete control over the process. You can choose which debts to include and negotiate with lenders on your own terms.

3. You Can Make Your Own Plan: Debt consolidation companies use standard plans that might not be customized to your unique financial situation. When you do DIY debt consolidation, you can make your own plan that works for you.

1. It Takes Time: Consolidating debt by yourself takes time and effort. You'll have to gather all the information about your debts and create a repayment plan. This can be time-consuming and stressful.

2. You Might Need Good Credit: Getting a good interest rate on a debt consolidation loan requires good credit. If your credit isn't great, it might be difficult to get a loan with a lower rate than your current debts have.

3. You Might Not Get the Best Deal: Debt consolidation companies have relationships with lenders that can get their clients better deals. If you do the consolidation yourself, you might not be able to get the best interest rates or payment plans.

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