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Is Debt Consolidation a Good Option?

Signs debt consolidation is right for you.

by Chris O’Shea

Debt can be hard to handle. That’s especially true if you’re saddled with a lot of it and the interest keeps piling up. One way to help yourself out is to consider debt consolidation. Here are some signs that consolidation is the right move.

If You Have Multiple Debts

Consolidation only works if you have multiple loans or lines to combine, so this is the most obvious sign. If you are behind on several monthly bills, debt consolidation may be an option for you. Combining multiple debts into one can make it simpler to manage with just one loan payment instead of many.

Your Debt Has High-Interest Rates

Getting out of debt is hard enough, but when you add high-interest rates to the mix, it makes it more difficult. If your debts have high-interest rates, you should consider debt consolidation. When you consolidate, you may be able to get a lower interest rate offer. Reducing the interest can help you save heaps of cash as you deal with the debt.

You Have a Decent Credit Score

If you have a good credit score but are struggling with debt, you may want to look at consolidation. A good credit score will help you secure a lower interest-rate loan. The higher your score, the better offers you’ll receive. Use that score to your advantage if you consolidate your debts.

Do One Thing

Combine your debts if you can find a low-interest consolidation loan.

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