Combining multiple debts into a single payment to simplify your finances and potentially lower interest rates.
Streamlined payments, potential interest savings, and improved financial management.
Potential fees, longer repayment terms, and the risk of accruing more debt.
Personal loans, balance transfers, and home equity loans are common options.
Using a loan to pay off existing debts, often with a fixed interest rate and predictable payments.
Transferring high-interest credit card balances to a new card with a lower or zero interest rate.
Using the equity in your home as collateral to secure a loan for debt consolidation.
Debt consolidation itself doesn't directly harm credit, but certain factors may affect it temporarily.
Individuals with multiple high-interest debts, struggling with payments, or seeking simplified finances.
Debt consolidation can be a helpful tool to manage debt more efficiently, but it's essential to consider the pros and cons before deciding if it's the right choice for your financial situation.