If they show that they won’t go back to spending, they’re a better candidate for debt consolidation.
In other cases, the problem could be as simple as reducing overspending on entertainment. Track your spending on a regular basis and evaluate the differences between your needs and wants. She says she prefers to work with clients for months to gauge how serious they are about repaying their debt.
“If you haven’t changed any habits, you can guarantee you’ll be right back in debt in a matter of months,” Lewis says.
“This is about changing behavior and making sacrifices.” Don’t gloss over your previous actions.
You may commit to a secured or unsecured loan, transfer outstanding debt onto a new or existing line of credit, or pool your debt on a balance transfer credit card.
Debt settlement and debt management plans are other options.