This is a personal answer that requires further details.
Debt consolidation loans and refinancing loans are not for everyone. And, not all debt consolidation loans are the same.
Debt consolidation can lower your loan payments, or remove those debts entirely. Debt consolidation allows you to take the 18%-22% credit card debt, 12% loan repayment and other debts down to a simple, single payment with singular interest rates. You can pay off multiple lines of credit, and use one loan’s repayment to pay off the rest.
But, debt consolidation may not be your best bet for removing debt from your life.
What exactly is a debt consolidation loan?
Debt consolidation is a refinance loan with extended repayment terms.
Often, your loan will be longer than the repayment period afforded by the previous lines of credit. This means that you’ll be in debt to the new consolidation loan longer (most often by years). However, the interest could likely be significantly less.
A debt consolidation loan also is not the answer for your bad debt. Technically, your debt does not go away – you simply put it all into one, single debt.
If you would like more help figuring it all out…
First Choice is happy to help you discuss if a debt consolidation loan is right for you.