Consolidating debt with a personal loan
Consolidation works best when your ultimate goal is to become debt-free.
This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.
Do you feel like your life is on hold because you’re trapped by all your debt payments? Consolidating your debt could be the answer you’re looking for.
It can help lower your monthly payments and get you out of debt faster so you can be in the driver’s seat of your own finances.
By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.
A debt consolidation loan is a good strategy if you: In this article, you can read about: Nerd Wallet’s top lenders for debt consolidation How to compare debt consolidation lenders How to consolidate debt successfully If your credit is good, you can apply for a 0% interest credit card and transfer your existing balances to it, which could save you money.
With so many ways to consolidate, there’s bound to be a solution for your unique situation. Debt consolidation is the process of combining your debts into one loan with a lower interest rate.
Instead of having multiple debt payments each month, you’ll only have one.
You can get your free annual credit report from each of the three major credit reporting agencies — Trans Union, Equifax and Experian.
And, Credit.com’s free credit report summary can help you understand what’s inside your credit report. There are several safe and smart ways to consolidate credit card debt, so you’ll want to research them before deciding what’s best for you.