Debt consolidation involves combining multiple unsecured debts into one bill, which can be helpful if you’re overwhelmed by an assortment of monthly payments.You can consolidate a variety of debts, including credit cards, payday and personal loans, utility bills and medical expenses.“It can be really overwhelming when you have five credit cards to pay and you don’t even know where to start.I’ll sometimes float the idea of debt consolidation so they only have one bill to pay or so they can have a lower interest rate.” There are many options to consider when deciding to consolidate your debt, some of which work better in different situations.Nationwide is affiliated with national lenders and a federally chartered bank located in Maryland licensed to offer home loans in all 50 states.
This can help eliminate missed or late payments and ensure that you’re addressing all your debts.
Debt consolidation loans can be a great option, not only because it streamlines monthly payments, but also because, in many situations, you may get a reduced interest rate and lower total monthly payment.
Maggie Germano, a certified financial education instructor and financial coach in Washington, D.
A word to the wise, though: Debt consolidation loans aren’t for everyone struggling with debt.
Determining which method will benefit you the most will involve some homework and some calculations … Debt consolidation can take many forms, including a personal loan, a balance-transfer credit card, a home equity line of credit (HELOC) and a debt management plan, among others.
Now, you can pay off high interest credit cards and installment loans that will lower your payments and assist you in saving thousands of dollars a year.