With more Americans dealing with more debt, debt consolidation looks like a better way out.. So, is debt consolidation a good idea?
If you consider debt consolidation as a solution, there are things you should know about.
First of all, consolidation is an effective strategy just as it sounds. You deal with different debt like credit card balances or personal loans and consolidate them into just one loan. This has an interest rate that is lower compared to the average of what you pay.
Debt consolidation could be a better idea for those who have enough equity in their property.
Combining debt is just buying time. You have to think of whether you want to pay less but for a long period of time.
Is Debt consolidation a better idea on paper? Yes it is. You are getting higher interest credit card debt and making it into a lower interest loan. You