In these tough economic times many Americans are faced with significant credit card debt and are looking for help reducing their monthly payments. Debt consolidation allows you to combine numerous debt obligations into one and streamlines the repayment process for credit cards, loans, and other bills. Debt consolidation usually includes lower monthly payments and a repayment plan that saves money and resolves debt faster than you could on your own.
It can be hard to decide on what debt consolidation company or website to use. We have done the research and we are providing you with our top picks for debt consolidation and loan options.
3 Major Benefits of Debt Consolidation
1. Track debt repayment
Once you consolidate your debts, regardless of which method you use, you will have one bill to pay. This can help you stay on top of your finances and set an attainable goal for your debt repayment plan.
2. Save money on interest
Ideally, you will use a financial product with a lower interest rate and fewer fees than what is charged on your current debts. This reduction in interest will help you save money you’d have been required to pay had you not consolidated.
3. Build your credit score
Paying off credit card debt with a loan can have an immediate effect on your credit score by lowering your credit utilization ratio. This is the total amount of credit available to you versus the amount of credit card debt you have.