Debt Consolidation Advantages
It makes it easier to track and manage your debt repayments.
If you make all payments on time a Debt Consolidation Loan may improve your credit score.
When consolidating debt, your overall monthly payment is likely to decrease because future payments are spread out over a new and, perhaps extended, loan term.
Debt Consolidation Considerations
If you have a poor credit score you may be stuck with high interest rates.
Taking out a debt consolidation loan may involve hidden additional fees like balance transfer fees, closing costs, and annual fees.
There is no guarantee that your new loan will be large enough to pay off all of your current debts in full, and may leave you with more than one payment to make.
Do I qualify?
The qualifying criteria for Debt Consolidation Loans vary from company to company. It is important that you consider your chances of acceptance before you apply, as a declined application may appear on your credit file and affect it negatively.