This guide will explain how debt consolidation works, the different methods, and its pros and cons.
What Is Debt Consolidation?
Then you have only one due date each month.
You might also lower your interest rate, monthly payment or both.
Can You Survive 10 Days of Budgeting?
If you better wrangle your budget, it may be time to consider a savings challenge.
How Does Debt Consolidation Work?
How exactly does this whole debt consolidation thing work?
You take out a new loan that covers all your existing debts.
Once you square away those debts, youre left with just one loan to focus on.
Establish a payment strategy that aligns with your income and lifestyle without causing unnecessary financial strain.
Always prioritize debts with higher interest rates.
Debt consolidation can be a smart move, but its not for everyone.
The decision to consolidate loans greatly depends on individual circumstances, Feniak says.
We Dare You to Take Control of Your Debt
Up for a debt challenge?
In 10 days,these 10 practical stepscould help you get back on the right financial track.
Best Way to Consolidate Debt
The best way to consolidate debt depends on your situation.
Heres who might benefit from each method.
Heres a simple guide to help you make the best choice:
1.
Assess Your Financial Situation
2.
Check Your Credit Score
3.
Research Different Consolidation Methods
4.
Shop Around for Lenders
5.
Read the Fine Print
6.
Seek Professional Advice
Alternatives to Debt Consolidation
Not sure if debt consolidation is right for you?
There are other ways to tackle and manage your debt.
Heard of These Credit Card Debt Tips?
But millions of Americans overlookthese easy tipsthat could help them manage credit card debt even more wisely.
Read moreto boost your credit knowledge and keep your credit score in check.
Tips for Successfully Managing Debt After Consolidation
So, youve consolidated your debt great start!
But thats just the first step.
