Shirley Smith
1 minute read
17 Mar 2020
8:50 am

Buried under debt? When to get counselling, and when to consolidate

Shirley Smith

Both debt consolidation and debt counselling can be used to help you get out of debt. But they do so in very different ways and the best solution will depend largely on how deep in debt you are, and what options are available to you.

Woman managing bills. Image: iStock

When to consolidate your debt Debt consolidation is a good option if you are struggling to make minimum payments and just want a little breathing room because it results in lower monthly instalments. But this solution requires you to have a credit score good enough to qualify for a debt consolidation loan. And it will cost you. The lower monthly instalments are only possible because your loan term is extended. This increases the period over which you pay interest and makes your debt more costly. When to get debt counselling If you are deep in debt and have been missing...