If you are struggling to repay your debt, you may be considering a debt consolidation plan (DCP), or might have already signed up for one.
A DCP helps you to combine all your debts into a single loan. This makes paying off your debts a simpler affair as you do not need to keep track of all the different loan types, interest rates and due dates. In addition, there could be savings on interest charges if your DCP offers lower interest rates than your existing debts.
While a DCP can be an excellent tool to help you pay down your debts faster and in a more disciplined manner, success is not guaranteed. Here are four factors that can cause your DCP to fail:
- High interest rates
One major advantage of a DCP is being able to consolidate all your debts at lower interest rates. When the interest …