That can make it easier to focus on getting out of debt. People have saved thousands by consolidating higher-interest debts using a single, personal loan, this will not negatively impact your credit.Check Your Rate Now The term debt consolidation encompasses a wide range of options. Below, we’ll describe the various different ways you can consolidate your debt and explain the advantages and disadvantages of each particular option: Debt Consolidation Company There are many debt consolidation companies out there.The fees and interest rates can end up being very high – especially if you have fair or poor credit.Since most people struggling with debt do not have excellent credit scores, they’ll have to pay high interest rates and fees which will burn a large percentage of their total cash flow each month. Furthermore, even if you get what seems like a good interest rate, there is still a significant risk involved in dealing with a debt consolidation company.For example, if you were transferring ,000 to the new card you would pay 0 to 0.Then, you have a period of time (usually 6 months or 1 year) in which you will not accumulate interest on the balance.You also must be careful not to continue using more credit (with credit cards) after entering the debt consolidation program.
Consolidation can help with this problem by reducing the number of bills you get down to a single one. Check your rate using Ready For Zero's free debt consolidation tool.If that’s the case, putting your house on the line may be too risky of an option for you.Balance Transfer You might have seen offers for “0% interest” credit card balance transfers.Your repayment plan might be much longer, which could cause you to pay more interest over the life of the loan even with a lower interest rate than what you had before.And if you miss a payment (or are late) you could face costly penalties and your interest rate could be increased.