What is debt consolidation?- What types of loans can I consolidate?
- Who should apply for debt consolidation?
- What are the benefits of debt consolidation?
Debt consolidation is the replacement of several loans with a single loan.
What types of loans can I consolidate?
Debt consolidation can be used to pay off many types of unsecured debt such as credit card debt, medical bills, personal loans, store credit or charge account debt, gas charge accounts, student loans and certain types of installment loans.
Who should apply for debt consolidation?
Any individual feeling overwhelmed with their current debt situation should consider debt consolidation. Are the multiple payments you are making each month or scattered due dates leaving you stressed? Debt consolidation could be the solution for you.
What are the benefits of debt consolidation?
Determining the best benefits of debt consolidation depends on your situation and your goals.
Here is a listing to consider:
- One convenient monthly payment
- Can lower debt payments by as much as 50%
- Help to avoid filing for bankruptcy
- Eliminates harassment from creditors
- Saves interest fees
- Reduces your overall monthly debt
- Improves your credit rating by establishing a history of timely payments
- Helps you to establish a monthly budget
Remember:
With debt consolidation, your goal is to eliminate your existing debt. Your debt advisor will more than likely recommend the closing of some or all of your accounts. Evaluate the necessity of each account, and keep only the minimum open for emergency use.
