How Debt Consolidation Works (And When to Use It)
Juggling multiple debt payments is stressful and expensive. Consolidation might be the answer.
J
Jane Editor
Financial Writer
What is Debt Consolidation?
Debt consolidation combines multiple debts into a single loan — typically at a lower interest rate. This can simplify your finances and reduce your monthly payment.
Types of Consolidation
Personal loans, balance transfer cards, home equity loans (HELOCs), and debt management programs are all forms of consolidation.
Is it Right for You?
Consolidation makes sense if you can get a lower interest rate, you're committed to not adding more debt, and the savings outweigh any fees.
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Debt Consolidation
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