Is Debt Consolidation A Good Option?
By: Chris O' Shea
Signs debt consolidation is right for you
Debt can be hard to handle. That’s especially true if you’re saddled with a lot of it and the interest keeps piling up. One way to help yourself out is to consider debt consolidation. Here are some signs that consolidation is the right move to make.
If You Have Multiple Debts
Consolidation only works if you have multiple things to combine, so this is the most obvious sign. If you are behind on several monthly bills, debt consolidation is likely a good choice for you. Combining multiple debts into one debt can make it easier to pay it off, as you now have only one thing to worry about instead of many.
Your Debt Has High-Interest Rates
Getting out of debt is hard enough, but when you add high-interest rates to the mix, things get so much more difficult. If your debts carry high-interest rates, you should consider debt consolidation. When you consolidate, there’s a good chance you’ll get a lower interest rate offer (or even zero interest rate). Reducing the interest can help you save heaps of cash as you deal with the debt.
You Have a Decent Credit Score
If you have a good credit score but are struggling with debt, you should probably consolidate. A good credit score will help you secure a lower interest-rate loan. The higher your score, the better offers you’ll receive. Use that score to your advantage and consolidate the debt.
Do One Thing: Combine your debts if you can find a low-interest consolidation loan.