Bad debt can quickly grow from nuisance to monster. Using plastic to make purchases is so easy, and paying the minimum balance each month requires so little effort, that bad debt piles up.Before you know it, interest payments become so huge that you’re spending most of your paycheck on finance charges.
Debt consolidation allows borrowers to roll multiple old debts into a single new one.
, into one single bill that’s paid off with a loan.
There are dozens of ways to do this, and some include transferring debt to a zero or low-interest credit card, taking out a debt consolidation loan, applying for a home equity loan or paying back your debt through a debt repayment plan.
So the first step in debt consolidation is simply to consider whether it will actually work for you.
There are many ways to consolidate your credit card and other debt, such as with a 0% APR credit card, a home equity loan or a personal loan.