Consolidating Debt Into Easy Monthly Payments

Debt consolidation is any method of combing multiple debts into one monthly payment. There are several types of debt consolidation programs, and the goal of each is to reduce the interest rate and lower the monthly payment so you can pay off the debts in 3-5 years.

How To Consolidate Debt

First, you will want to decide which debt consolidation strategy you are going to use. As mentioned above, debts can be consolidated with or without a loan. You can find debt consolidation loans from banks and online lenders. Nonprofit credit counselling agencies will be able to provide all of the benefits of a debt consolidation loan without having to take out new credit.

There are three major benefits of debt consolidation: