Is consolidating your bills good
” If you already know debt consolidation is the right path for you, here is a preview of the best debt consolidation loans revealed by my research: Next, I’ll dive into more detail on each company.
I’ll later describe my methodology for choosing these three companies as the best debt consolidation loans online.
Debt consolidation is a strategy to roll multiple old debts into a single new one.
Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.
A credit score is derived from items reported in your credit file.
It uses a complex mathematical algorithm to come up with a score that predicts whether you are more or less likely to default on your next loan.
Most issuers charge a balance transfer fee of around 3%, and some also charge an annual fee.
For example, let's say you take out a consolidation 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.
While it’s not as drastic as debt settlement or debt management, debt consolidation has its own pitfalls that you need to be aware of.
If you need help educating yourself on your debt consolidation options, you can start with the section titled “What is Debt Consolidation?