Consolidating your bills good idea dating my second cousin
You can use a personal loan to refinance your existing debt. If that describes your situation, the fact that you have a job or have paid the medical bill means you've solved the problem that caused the debt in the first place.
That means you'll have one monthly payment at one interest rate instead of the stress caused by a bunch of smaller bills coming due on different days of the month. Let's take a look at the questions you might ask yourself before you take on a debt consolidation loan. If, on the other hand, you accumulated debt by overspending on credit cards, a debt consolidation loan may not be the answer just yet.
Refinancing your house to consolidate your debt by paying off your credit card and other bills might sound appealing, but beware of the risks.
You might trade several payments at high interest rates for one payment at lower interest, but that might not be your best choice.
Before evaluating the best way to consolidate debt, do these 3 things: Millions of consumers have said yes by consolidating debt into one payment.
Here’s what you need to know if you are considering these options for consolidation: Transferring different debt balances to one credit card account Many credit card companies offer zero-percent or low-interest balance transfers to allow you to consolidate your debt on one account.
This will allow you to make one payment and sometimes will result in lower payments.
Many zero-percent or low-interest credit card offers only last for a limited amount of time.
Adding ,000 on a 20-year mortgage means you'll pay interest on that amount for 20 years.
Chances are you can pay your credit cards off sooner than that, even though they probably carry a higher interest rate than your mortgage.
There are other steps to take first, like making a budget you can stick to, learning how to save and gaining responsibility in your use of credit.