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Robert Jain: The Pros And Cons Of Consolidating Bills

By Jason McDonald

If you have several bills to pay each month, you might be thinking about consolidating them. It's easy to see why, as this may reduce the amount of frustration felt from a financial standpoint. It can be argued, though, that this process has a number of downsides as well. When it comes to the pros and cons of monthly bill consolidation, here are some pros and cons that Robert Jain will be able to offer.

PRO - Every payment can be made at once. If you have multiple payments to make each month, consolidating them saves time. Instead of having to write out multiple checks or send numerous online payments, you can simply distribute a single sum. For many people, this reduces the headache associated with financial endeavors. This is just one of the perks that names like Bob Jain can tell you about.

CON - When you create a payment plan, you must stick to it, no ifs, ands, or buts. What happens if, for some reason, you're unable to make a full monthly payment? One of the most common setbacks is a lower credit score. As a result, it can be tougher to be approved for additional credit cards, loans, or anything else that requires involvement from your bank. If you're certain that bill consolidation is for you, understand that it's a process that must be committed to.

PRO - The likelihood of being late with payments is decreased. Let's say that you have multiple payments that you must cover, not all of them being automatic. There's a possibility that you will miss one of them, which is where bill consolidation comes into play. When you can bring all your bills into a single payment, it ensures that every amount is accounted for. When you make payments on time, it will do wonders for your credit score.

CON - The interest rates tend to be considerable. This is especially true if debts persist over the course of time. When interest rates increase, people end up paying more in the long term. As a matter of fact, many people tend to forgo bill consolidation for this reason alone. They don't want to spend more than what's absolutely necessary. For those that are on the fence about consolidating their payments into one, consider this potential con beforehand.

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