Debt consolidation services can work if you are able to curb your spending. Yes, it is easier just to pay one person, and have a smaller interest. At the end of the day, it is just taking longer to pay off the debt, because the length of time is extended. Slow down on your spending, by only buying the essentials. Yes, it is hard to stay at home while everyone is having fun at the weekend or going on holiday, but truthfully, you cannot afford these things.
Think about the future. When the debt is paid, you can once again enjoy yourself with your friends. Be strong, and you will win.
People are saying that this agencies are cons. In a sense, they are. They know that people in debt cannot stop themselves from overspending, so these people just get richer. Your debt gets higher, and your payment terms are once again extended so you can keep trying to pay off your debt. It is true what people say; it is only a symptom and not the cure.
Debt consolidation is just a fancy term for a loan. People know what happens with a loan. They borrow money, and a huge interest is added on to that sum, which then takes years to pay off. The simplest solution is to just save. If you want a vacation in the coming year, work out how much it will cost, and budget a certain amount away each month. This mean that when the time comes around to book, you will have the money. Do the same thing with spending money. Once the holidays paid for, you have not missed that money you have been putting away every month, so keep doing it. By the time the great day arrives, you will have a nice lump sum to take away with you and enjoy.
So, by all means, use a debt consolidation agency to help get rid of existing debts. You are paying more in the long-run, because instead of paying things off in two years, it may now be four years. Each year that is added on the interest is added on also. This is what gets missed. Then when this is sorted, make sure you budget your monthly payments and cut down on the luxuries. If you do not have any ideas about working out your own monthly budget, ask a family member or a friend you can trust.