Is consolidating debt a good idea
She had made several unnecessary purchases, signed onto a bunch of new credit cards, and bought a house all at the same time.Her husband tried to help, but he also brought along his own debt when they got married.It’s also not the solution if you’re overwhelmed by debt and have no hope of paying it off even with reduced payments.If your debt load is small — you can pay it off within six months to a year at your current pace — and you’d save only a negligible amount by consolidating, don’t bother.You might qualify for an unsecured debt consolidation loan at 7% — a significantly lower interest rate.For many people, consolidation reveals a light at the end of the tunnel.“It was a definite feeling of, ‘How low could I go? When it got unbearable, they sought the help of a professional.
Do your own research before signing up with debt consolidation services.
To do this, many or all of the products featured here are from our partners. It can reduce your total debt and reorganize it so you pay it off faster.
If you’re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments and due dates, debt consolidation is a sound approach you can tackle on your own.
And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Our partners cannot pay us to guarantee favorable reviews of their products or services. " At Nerd Wallet, we strive to help you make financial decisions with confidence. Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower-interest payment.
We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.