The Best Situations To Consolidate Your Debt (And How)

Debt consolidation is a way of gathering your current loans into one single loan. It keeps them organized and could also save you money. 

People consolidate their debts under particular circumstances. The following are the situations when you should consider it. 

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When Is The Best Time To Consolidate Your Debt?

When You Have Several Unpaid Debts

One advantage of debt consolidation is it helps you deal with your existing loans by transferring the charges to another lender. The lender will then assist by deciding which of the loans will be paid off first and assign you a single monthly payment instead of several different ones. 

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When Your Loans Have A Higher Interest Rate

Another possible advantage of consolidating your loans is a significantly lower interest rate than the rates of your individual loans. If you’re unable to put any extra money towards the principle, you may never pay the debt off. 

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Credit scores are one of the main factors in determining your interest rate.  The typical minimum credit score required by lenders is often in the 650 range, but some accept borrowers with bad credit and will accept credit scores as low as 580. 

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When Your Credit Score Improves

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How To Apply For A Debt Consolidation Loan

- Prepare Ahead Of Time - Look For A Lender - Apply - Putting It All Together

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