October 21, 14
We live in a world where everything has two sides: positive and negative, whether it is the universal truths such as good and evil or more common ones. Everything can and should be analysed from all perspectives including debt. So the question arises: what is debt?
Usually it is money or materialistic goods that were borrowed from another party under given condition that everything must be returned to the lender with special interest (since such services as a rule are not free of charge).
There are all kinds of debts; however they all can be subdivided onto two major groups: most widespread general ones and others. As of the first category it is made up of medical service, credit card, and student loan debts. The second one is more narrow and more personal: here come different bills, personal as well as payday loans.
There are two sides of debt consolidation: positive and negative. To start off with negative I can't but mention the fact that debt consolidation comes at a certain interest rate, and in most of the cases you will overpay (sometimes even significantly). Additionally there is always a risk to get even deeper in debts and if you are planning on using loan services in the future - you do not want your credit score to be damaged.
Speaking of positive sides - debt makes you more punctual and straight thinking. Having a loan makes you more trustworthy for the lenders, in case you need to loan again.
Finally, having a loan is not something that should be considered as bad. There are different types of debts including the inevitable ones (e.g. mortgage). Therefore, there are pros and cons of having a loan. Personally I think that if you manage to pay off debts in a timely manner - it's a great way to solve some temporary problems in this way.
