> Staff Reporter
Windhoek There is a myth that debt consolidation saves interest and you have one smaller payment, but the truth is that debt consolidation is an indication of over-indebtedness which only treats the symptom.
Debt consolidation is defined as taking out a new loan to pay off a number of liabilities and consumer debts, generally unsecured ones.
In tough financial times people often turn to debt consolidation to find a solution to their monthly cash-flow shortage.
With debt consolidation you are only extending the problem, because you think you solve the debt problem, but in reality the debt remains as do the habits and behaviour that caused it. You cannot borrow your way out of debt. You cannot get out of a hole by d…
Read the full article at: https://southernafrican.news/2017/01/17/debt-consolidation-compounds-debt-troubles-bank-windhoek-cautions/