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Whether new to tackling debt or experienced, quick solutions are crucial. If skeptical about consolidation, know the right option can help you regain financial control.
Debt consolidation merges multiple debts into one to lower interest, improve terms, and simplify payments. Options include loans, credit card transfers, and consolidation companies. The best choice depends on your debt type and amount.
Yes! Effort impacts debt consolidation results. Success with loans or credit card transfers requires a solid plan. Debt consolidation companies offer expert guidance and savings, with a Harvard study showing an average 33.2% debt reduction after fees.
If you're planning to consolidate on your own with new credit, ensure the pros outweigh the cons. Balance transfers and consolidation loans work best if these statements are true:
You have a consistent income for loan payments.
You have good credit to secure a lower interest loan or a 0% introductory rate credit card.
Your total debt payments are less than 50% of your income.
You can pay off a consolidation loan within 5 years.
You can pay off a balance transfer before the introductory rate expires.
Simplifying your debt on your own may not always be the best option. Consider working with a debt consolidation company if:
You have more than $10,000 in debt.
Your credit isn't good enough for a loan or credit card with better terms.
Your total debts exceed half of your income.
When you need a quick way out of debt but don't know where to start, Debt Consolidation Reviews can help. Our top 5 lists weigh the pros and cons of each service. Check out our top 5 debt consolidation companies today.
