Are there other factors to consider in debt consolidation?

Are there other factors to consider in debt consolidation?

Robert Sinclair (Director, AFB) gives expert video advice on: What is debt consolidation?; Why might I get a loan to pay off my debts?; Is debt consolidation a good idea? and more...

The main factor to consider when consolidating debt is that debt has accumulated from somewhere. It still has to be repaid. Therefore, at that point, if people continue to spend in the same way, without having an increased income, the problem will continue to spiral. Therefore, the important thing, when somebody goes through a program of debt consolidation, is that they also do a budgeting plan in order to ensure that they can meet the repayments of that consolidated debt, but also are responsible in terms of being able to spend only as much as they've got available going forward.