Debt consolidation is getting more difficult

Wednesday 6th February, 2008 

Those of us who are in debt may be tempted into taking more expensive debt consolidationloans if we do not change our spending patterns, claims personal finance magazine.

Moneywise claims that those who are using debt consolidation this year will find it more difficult to obtain cheaper forms of credit as a result of the credit crunch. The impact of this will be that more people will be using their overdraft facility more which is more expensive than normal forms of credit.

The credit crunch last year meant that many credit providers lost a lot of money due to the sub-prime fiasco in the US. Not only did many companies lose money but confidence in the market is now so fragile that many lenders are finding it difficult to borrow money at a competitive rate. So what chance does the man-in-the-street have? Answer-wait and see!

Debt Watchdog believes that everyone should be in control of their finances and they should not wait and see and should act now! Many debt problems are as a result of a combination of two factors: poor debt consolidation decisions and bad debt management. Debt Watchdog is committed to empowering everyone to find a solution to their debt problems through good debt management and where appropriate, proper debt consolidation.

The key to any debt management strategy is to understand our need to spend more than we earn. We have to ask ourselves the question are we too reliant on debt and how can we address these problems? The first step is to recognise you have a problem and the next is do something positive about it before it gets out of hand!

Act now and deal with your debt problem now. Debtwatchdog is a great resource for those wanting to resolve their debt themselves. You can also use our debt forum.