Understanding Debt Consolidation

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Managing debt can be difficult. It can spiral out of control quickly. Debt consolidation may be a great option to consider if you are juggling multiple accounts with a lot of debt. You will have the ability to consolidate all your debts into one account. This can get you out of debt much quicker. Instead of making multiple payments, you will be making one payment each month. Auto loans and student loans tend to be perfect choices for debt consolidation vs smaller loans. You can consolidate debt through a debt consolidation company or through a credit card company. You no longer have to feel overwhelmed by debt anymore because there are many options available to you. You should not wait until the problem fixes itself if you are dealing with debt. Continue reading to learn more about consolidating debt.

Debt Consolidation

When to Consolidate

Credit Card Consolidation

Debt Consolidation Loans

When to Consolidate

Debt consolidation should not be taken lightly. Under certain circumstances, debt consolidation may be advisable. However, there are other circumstances where it would not be necessary. For example, don’t consolidate debt to extend your repayment time on your balances. You can end up paying more over time. If you get a variable-rate debt consolidation loan, you may experience higher interest rates. When consolidating debt, it would not be smart to put your home on the line. There are advantages for you. You can pay off your debt quickly if you put money aside for emergencies and make all of your monthly payments on time. You will not accumulate too much debt since debt consolidation equals lower interest rates. They are much lower than loans and credit card rates. You will not qualify for debt consolidation if you do not have a good track record in making on time payments.

Highlights:

  • Lower interest rates
  • Debt Consolidation is a big deal
  • Save money in the long run

Credit Card Consolidation

There are a variety of credit card companies that offer debt consolidation programs if you are experiencing credit card debt. You will need to contact your credit card issuer to find out more about the services they offer. A supervisor may consider it even though a representative may not want to help you. You can ask them to lower your rate on your credit card so that you can get your debt paid off. You may also be able to benefit from a new card with a much lower rate if you have poor repayment history with the credit card company. You can also consider taking out a small personal loan if you have more than one account with debt. You can use the personal loan to pay off the debt or close the accounts. Discover Bank offers loans up to $35,000. You will be able to consolidate your debt into one payment if you qualify for a small loan.

Highlights:

  • Ask for a card with a lower rate
  • Ask for lower interest rate
  • Take out a small personal loan for debt

Debt Consolidation Loan

Another way to consolidate debt is by taking out a debt consolidation loan. Debt consolidation loans will allow you to pay back debt quickly if you have a variety of accounts such as student loans with accumulated debt. This will only allow you to pay one monthly payment instead of paying multiple. National Debt Relief, CuraDebt, and SoFi offers debt consolidation loans. If you want to see if you qualify, you can do so easily. It only takes a few minutes of your time. SoFi offers rates starting at just 5.19% APR, and they allow you to borrow up to $100,000. There are no prepayment penalties or origination fees with SoFi. SoFi even gives you seven years to pay the loan back. However, if you end up losing your job, they will allow you to stop making payments temporarily until you find another one. The best part is, SoFi will even help you find another job.

Highlights:

  • Offers free consultations
  • Consolidate your loans
  • SoFi offers unemployment protection

Conclusion

If you have too much debt that you are carrying around and are struggling to get it paid off, you should consider consolidating all of your debt. You will be able to benefit from a lower interest rate as well as one low monthly payment by combining all of your accounts into one. There are many options that are readily available for you. You can take out a debt consolidation loan, or even ask your credit card companies to lower your interest rates.

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