When it’s not done correctly, it can actually lead to more financial trouble than what you had when you started.
The ten points below can help you use a credit consolidation program successfully while avoiding common pitfalls that often catch people off guard.
To come out ahead, you need to find a consolidation loan with a low interest rate and a reasonable term.
You can consolidate using a personal loan or a balance transfer credit card.
You consolidate loans by rolling all your little loans into one bigger one.By combining your interest rates, you also lose the ability to employ a favorite tactic of financial planners for paying down debt: targeting the most expensive debt, the loan with the highest interest rate, first.Consolidating credit card debt is an invaluable way to solve challenges you may be facing with high-interest debt.The two terms are often used interchangeably, which leads to a great deal of confusion on the part of consumers, who may not realize that these are vastly different debt relief services.Get Financial Help Now Debt settlement is negotiating with creditors to settle a debt for less than what is owed.This is the number one mistake people make when they consolidate.