A person under debt is no doubt leading a stressful life when he or she has to manage multiple things with a single salary. All the household expenditure, the monthly bills, fees, medicines, saving and along with these if there is a debt to be settled then it becomes a next to impossible thing to be carried out. People with excess debt faces the situation where the expenditure gets more than the income and hence debt settlement and the monthly interest amount payments loses its dates.

People often miss out on the payment dates and even if they remember they do not have money to pay to the creditors. As a result the creditors gets in action and keeps calling the debtor for their payments which further brings the debtor under increased state of stress. Debt consolidation loans are one of the alternatives among the various alternatives that can be a way to solve the debts one holds. Some of these alternatives are credit counseling, debt settlement, debt management and bankruptcy.

Bankruptcy is a solution which is applicable in the worst cases. A professional often does a feasibility study on each and every alternative first. If there is a way out of these alternatives then the measures are taken accordingly. If not, only then they suggest the debtor to declare himself or herself bankrupt to get rid of the debts. Debt consolidation loans are one of the finest alternatives available though it has its own set of pros and cons all together. Before getting into the pros and cons one needs to know what exactly Debt consolidation loans are all about. It is like taking up one loan to resolve many past loans or one new loan to resolve other old debt. Some of its advantages and disadvantages are listed below-

1) It provides a great sense of relief to the debtor as because he or she now has the solution and money to resolve all the debts one holds. There would be just one loan left to be paid off and that too will have a very low interest rate and a flexible time period of paying it back. So the stress is reduced on a very high platform where one gets ample time to pay off the debt consolidation loans.

2) Better organisation- when a person just has one loan, it gets easy to remember the dates of payment, the amount required to be paid and it gets easy to keep a track on the transaction. One does not need to juggle through several bills, multiple payments and their distinct due dates anymore.

3) Cibil score- the cibil score remains at a good state as compared to the one in debt consolidation and bankruptcy as one pays the amount on time and maintains the due dates.

The only disadvantage debt consolidation loans might turn up to is with the fact that it is a loan for other loan. The bad habit of carelessness towards expenditure and money can be a throw back in debt consolidation loans cases for the debtor. People who are suffering from credit card debt issues are going for credit card consolidation loans which is much popular and beneficial these days. It is making life easy and tension free. So, try it out and you will surely want to go for it if you are in need.

Author's Bio: 

Lena Burkut is an independent writer cum traveler.