We want you to remember that the main goal of debt consolidation is to pay back your debts and to take back control of your personal finances.
While this can work it is extremely important that you find a credit card that has a lower interest rate and affordable balance transfer fees.
A balance transfer is almost never free so if the fees associated with it are high, it might not be worth it.
While getting out of debt can be life-changing, you need to consider how a debt consolidation loan will affect your credit rating. We’ll go over all of these questions below so that you can be as equipped as possible to finally tackle your debts.
The debt consolidation loan is probably the most popular form of debt consolidation.
Banks typically only want to lend to people with a high credit score.
An Alternative lender will work with you to help you get back on track; just make sure you choose a reputable lender.I am looking to consolidate my student loans because they are negatively impacting my score due to the low average age of credit they are creating while I am still in school.What will happen to the current loans once they are paid off? You’ll work with a credit counsellor who will negotiate with your creditors to reduce your interest rates and payment amounts.You’re still paying back your debt and you’re technically not consolidating your debt, but it’s another great form of debt relief.Note from the editor: Our research, news, ratings, and assessments are scrutinized using strict editorial integrity.