If you have many debts you should try to get a loan to consolidate them and not risk losing your possessions, but first must knowthe disadvantages of debt consolidation.
- In some cases, even if you pay less money per month and interests of the loan are lower, if you are paying the loan on time at the end you will pay more money.
- If you have to put your home or any other possession as collateral for the loan will grant you risk losing them if you can not repay the loan.
- Lower interest means that the lender is risking less money to lend, that is, you have a good chance to pay them, even staying with your home.
- Some nonprofit agencies that provide loans to consolidate debts can persuade you to let you manage your money.