Debt consolidation involves combining multiple unsecured debts into one bill, which can be helpful if you’re overwhelmed by an assortment of monthly payments.
By consolidating debt with a personal loan, you can save considerably — sometimes up to 40 percent of the total debt.
Enter your current debts into our loan calculator to start creating a plan to eliminate your debt.
Some people even open a new card with a 0 percent APR for a promotional introductory period (many of these run the gamut from six to 24 months) and transfer other balances over to that card.
This can be a viable solution if you think paying the card off within that promo time frame is doable.
“Most of my clients have credit card debt,” she said.
“It can be really overwhelming when you have five credit cards to pay and you don’t even know where to start.While debt consolidation certainly has merits, it is not the right choice for every individual.Above all, the approach has to match the need and the comfort level of the borrower.This makes the most sense when the personal loan has a lower interest rate than you’ve got across your existing debts.For individuals with debt on several credit cards, it can make sense to transfer the balances over to the card with the lowest interest rate, creating one payment and lowering interest overall.If you know that wouldn’t be overwhelming to you, that makes a lot of sense.