Debt consolidation can manage multiple debts but understand the limits and risks. In Malaysia, banks offer personal loans from RM5,000 to RM150,000 for consolidation, based on your creditworthiness and debt-to-income ratio. Lenders prefer consolidating debts not exceeding 60% of your gross monthly income.
While simplifying payments and potentially lowering interest rates, consolidation doesn't eliminate debt itself. Consolidating too much debt may make the new loan's monthly payments unmanageable, leading to further financial difficulties.
Carefully evaluate your situation, calculate total debt, and determine a manageable repayment plan before applying. Seeking financial advice can help make an informed decision and avoid taking on unmanageable debt.