You could fall behind on payments
Missing payments toward the new debt means that you could end up in a worse position than when you started.
For example, if you fail to pay off your balance transfer card within the zero-interest promotional period, youll be stuck paying it at a higher APR potentially higher than the original debt.
If you fall behind on a consolidation loan, you could rack up late fees, and the missed payments would be reported to the credit bureaus, jeopardizing your credit scores.
Before consolidating, make sure the new monthly payment fits comfortably in your budget for the entirety of the repayment period.
You havent addressed the root problem
Though consolidation is a helpful tool, it isn’t a sure …
Read the full article at: https://journalnow.com/business/investment/personal-finance/the-pros-and-cons-of-debt-consolidation/article_e9dd9a46-fbce-511a-91d4-b80b670b85fd.html
