Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.
Not only does that simplify your debt payments, it can also help you save money.
Debt consolidation lets you roll several debts into one loan with a lower interest rate and longer payment term.
That means you’ll pay less each month to just one lender instead of many.
Do you feel like your life is on hold because you’re trapped by all your debt payments? Consolidating your debt could be the answer you’re looking for.
It can help lower your monthly payments and get you out of debt faster so you can be in the driver’s seat of your own finances.
I’ll also explain what debt consolidation is, different types of debt consolidation loans, where to get debt consolidation loans, alternatives to debt consolidation, and how to avoid scams.
Lending Club is the nation’s largest peer-to-peer lender.With so many ways to consolidate, there’s bound to be a solution for your unique situation. Debt consolidation is the process of combining your debts into one loan with a lower interest rate.Instead of having multiple debt payments each month, you’ll only have one.Here’s how credit card consolidation works: You first decide if you want to take out a new loan, open a new credit card or enroll in a debt management plan (more on that later).Whichever option you choose, you will use it to pay off your multiple balances.When receiving a personal loan, you are opening a new installment credit line and, if handled responsibly, it can help raise your credit score.