If you’re like many Americans with high credit card balances, you may be looking for ways to get your debt under control. Debt consolidation loans are one option that can reduce your debt and help you pay it off sooner. Debt consolidation is the process of combining multiple debts — such as credit cards, medical bills and payday loans — into one debt with a fixed monthly payment. Consolidating debt with a personal loan works best if the rate on the loan is lower than the combined interest rate on your existing debt.
When comparing debt consolidation loans, look for low rates, flexible terms and consumer-friendly features such as direct payment to creditors.
Debt Consolidation Next Steps
Debt consolidation is a financial strategy that combines high-interest bills like credit card debt into a single payment at a lower interest rate. A successful plan will reduce your monthly payment to an affordable rate and eliminate debt in 3-5 years.
The primary benefit of debt consolidation plans is reducing multiple credit card payments to just one each month. The lower interest from a consolidation plan reduces your monthly bill payments and allows you to retire the debt quicker. The best debt consolidation option is going to give you a monthly payment you can afford, while limiting the amount of interest you need to pay.
Check out the below and find your best options.