Debt consolidation a good move for someone with bad credit? “Yes” Says Pepperdine Graziadio Faculty Member Brandon Parsons
- Dr. Parsons urges positive action from those in debt to address the situation
- For many, debt consolidation is a step toward dealing with a individual’s specific financial situation
Action and peace of mind, simplicity, improved credit score and stopping collections are some benefits of consolidating debt, said Pepperdine Graziadio faculty member Brandon Parsons, PhD. In a recent article in financial news outlet NerdWallet, Dr. Parsons shared his perspective on consolidating debt for those with bad credit. There are times when uncontrollable factors lead to financial problems (e.g., a loss of a job or a medical event). Unfortunately, there can be little you can do to mitigate uncontrollable factors other than increase the size of your savings. Do your best to manage those factors you have some control over well (e.g., limit spending on unnecessary items). It is important to act to align revenue with expenses going forward, said Dr. Parsons. If there is a future imbalance, financial problems will continue to arise. He also encouraged debtors to have a sense or urgency in addressing financial trouble but do so with caution: “Whether a debt consolidation service or a debt consolidation loan, be sure to consider the costs.” Read the full story here.