You have multiple options for debt consolidation: Each option has advantages, disadvantages and challenges.
Here’s a closer look: If you’re struggling with debt, you may have already been approached by companies that promise they will help you wipe out your debt. Such companies may charge you hefty fees for consolidating your debt, and it’s possible to wind up even further in debt if you don’t fully understand the company’s fees and conditions.
This approach can work if you know you’ll be able to pay off the entire debt before the promotional period expires.
It’s also important to avoid making additional credit card charges while you’re paying off a high balance to not further increase your debt.
In general, debt consolidation loans can reduce the amount of interest you pay each month, reduce the number of creditors you have to deal with, and shorten the amount of time it will take to pay off your debts as long as you qualify and keep with the program terms.
If you’re struggling to pay high interest rates on a lot of unsecured debt, consolidation may seem like an attractive solution.
After the promotional period ends, the interest rate typically goes up.But debt consolidation is not always the best way to deal with debt issues, and it has drawbacks you should be aware of before you move forward with it.What’s more, there are several ways to go about consolidating debt, and depending on your circumstances, one method might make more sense for you than another.The program length will depend on the information provided by your account holders, such as balances and interest rates.Any missed payments under the plan could negatively impact the program length with changes in interest rates and additional fees and charges that could increase balances.