Is Debt Consolidation Right For You?
January 12, 2021
Debt consolidation rolls multiple debts, typically high-interest debt such as credit card bills, into a single payment. The goal of debt consolidation is to help you reduce your total debt and reorganize it so you can pay it off faster. However, debt consolidation is only helpful if:
- You have a manageable amount of debt
- You can get a lower interest rate
- Your cash flow consistently covers your monthly debt payments
- You have a plan to prevent running up debt again
Consolidation isn’t a magical weapon for debt troubles. It doesn’t solve excessive spending habits that create debt in the first place. It’s also not the solution if you are overwhelmed by debt that you have no way of paying off, even with a consolidated payment and a lower rate. However, debt consolidation can get you money you may need if it is affordable and makes financial sense.
If you are interested in applying for a loan with Reliable Credit Association to consolidate debt, you can apply online or call your local branch to speak with a loan officer.
Some additional reading on debt consolidation:
What do I need to know if I’m thinking about consolidating my credit card debt? (consumerfinance.gov)
How To Consolidate Debt (experian.com)
Contributed by: Brooke B-W.