Is consolidating your credit a good idea

17-Oct-2015 20:37 posted by eth2 | Leave a comment

Dear Lifehacker, I've racked up a good bit of credit card debt, and while I'm slowly paying it down, it's a pain wrangling multiple bills with different interest rates.

Getting rid of all of your credit card bills, no more annoying multiple payment to multiple creditors, just one, automatic loan payment every month that comes out of your account automatically and you're back on the road to being debt free, right?It's definitely a tantalizing opportunity, but it's not perfect.Remember, debt consolidation loans are financial products, which means financial institutions wouldn't offer them to you if they didn't make money from them.Here are a few tips to make sure you're not falling into a trap: If you're hopelessly drowning in debt, know that you can't negotiate any lower interest rates with your credit card companies or creditors, or if the math works out, a debt consolidation loan may be a good decision for you.Similarly, if you're in serious trouble with high interest rates, high monthly payments (that you're having trouble with already), and too many bills, a debt consolidation loan might help.Combined with a debt repayment plan or credit counseling, it can be used to pay off all of your debt at a fraction of their original cost.

If it may be a good time to strike, pay it all off, and walk away debt-free. Of course, those situations aren't the norm, and most of us with credit card bills looking to get rid of them aren't in that position.

That's not to say there aren't situations where debt consolidation loans can offer people who really need them the breathing room to get out of debt and organize their finances.

Well sure—but it comes with a couple of pretty big caveats that might sour the milk for you.

Let's explain, and then you can decide whether it's a good idea in your case.

In more cases than not, debt consolidation loans don't make sense.

They're certainly attractive: the lure of being able to pay off all of your credit cards is a strong one, especially in exchange for a single monthly payment to your bank or credit union at a lower interest rate.

Leave a Reply

  1. love dating ru flirt 10-Nov-2015 05:03

    This week we speak to Jamaican fashion designer and entrepreneur Ayanna Dixon.

  2. Dirrty hookup 10-Nov-2015 02:01

    Most of the Renaissance art was created for and paid for by patrons who had significant control over the content Fucking Berlin create..

dinamarca dating