DEBT CONSOLIDATION - (2024)

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Have you heard about debt consolidation? I know you may have heard of it when it comes to having student loans.

But did you know you can consolidation your personal debt? This is something that can help you if you need it.

So if you’d like to figure out how to consolidate your debt and help boost your credit score keep reading.

WHAT IS DEBT CONSOLIDATION?

So what is debt consolidation? Debt consolidation is when you use on loan to pay off multiple high interest debts.

If for instance you have 3 or 4 credit cards that you are making monthly payments on and on each one of those cards you have an interest rate, which is high.

You can take out one loan that totals all of your credit card balances and use that to pay off your credit cards.

This way you end up with one payment and one interest rate, instead of the 3 or 4 you had before.

WHO IS DEBT CONSOLIDATION FOR?

So debt consolidation really can be for anyone that has multiple debts that each have high interest rate.

Or anyone that wants to combine multiple payments into one payment. I know I dislike making many payments a month when I can just make one payment.

The only thing about consolidating is that if you have too many high balances you can have a hard time getting a loan big enough to cover your balances.

In order to get a loan for consolidating your credit needs to be checked and if you have too many open balances, your score may be lower than what companies approve.

WHAT ARE THE BENEFITS OF DEBT CONSOLIDATION?

So what are the benefits of consolidating your debts?

Well for one you can save some money because your not paying multiple interest rates on each line of debt.

Since your able to pay less interest more of the money you pay back goes straight to your loan and you can potentially pay the money back faster than you originally would.

Also instead of have multiple monthly payment that can add up, with consolidating all you have is one monthly payment that can be lower, depending on your pay back schedule.

And consolidating can improve your credit score. This one is really great. Since you will be paying of the debt that you have your credit score will increase.

And if you make your payments on time it will continue to increase.

For more on debt consolidation click here.

WHAT ARE SOME COMPANIES THAT OFFER YOU DEBT CONSOLIDATION?

There are so many companies that offer you debt consolidation and all of them have different interest rates.

So the key is to find one that will give you a lower interest rate and a lower monthly payment.

Mostly of these loans can be paid back anywhere form 1 year to 5 years.

Even though there are many companies out there that offer loans these are some of the companies that I tried and had good experiences with.

Lending Club

Upgrade

Upstart

They all offer everything I explained above and the process is really simple and easy to do. The payout is really easy too. And everything is done electronically.

Another thing that is great about these companies is that they do not charge you a fee if you happen to pay off your loan quicker than the agreed upon time.

This is important to look for when your looking for loans because some companies do charge you a fee.

MY EXPERIENCE

I have taken out a couple of loans to consolidate my debt when necessary and have had really good experiences with them.

They helped me pay off my debt which helped me raise my credit score and it also made my monthly payments easier since it was just one payment a month.

I was able to pay these loans off a bit quicker than the given times for both which only helped me to increase my credit.

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FINAL THOUGHTS

Now debt consolidation may not be for everyone but this maybe a really good option for some. Especially those of you that are looking to get out of debt faster.

It really helped me to consolidate and make a once a month payment. So much so that I was able to pay off the loans sooner than the given time.

Have you ever tried debt consolidation? If so what’s been your experience with it?

Do you think this is a good option? Or do you think making your regular payments on your cards is a better option for you?

Let me know what you think in the comments below, I would really love to hear from you.