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It is quite often advertised that the way to be debt free is to consolidate your debts. This can be true for some people, but not all. Here are some key points to keep in mind before deciding to consolidate your debts:
Of course if you are so short on cash that you are going further and further into dent, then a consolidation loan would be a great help. However if you can manage your current repayments you will get out of debt faster if you pay off your most expensive debt first (the one with the highest interest rate) and then once this is paid off, use the repayment amount from this debt on your next highest debt.
Continue this cycle through your 3 most expensive debts, and you’ll have the rest of them paid off in no time at all.
Remeber – avoid the temptation to spend your saved repayments on anything other than paying off other debts. This is the key to getting out of debt.
