Those high interest rates come with high monthly payments, and it can be easy to get caught in the “minimum payment” cycle — which only leads to an ever-growing balance.
Paying off your credit cards with a consolidation loan can help you avoid that cycle, as well as any credit score hits from missing payments when the balance becomes unmanageable.
Be sure to look for an interest rate lower than that of your current debts.
Student loan consolidation can be a big help to recent graduates struggling to pay multiple student loans after leaving school.
You’ll want to comparison shop loan terms, as well as check out the reputation of the providers, before entering an agreement.Credit cards and other high-interest unsecured debt (debt not backed by collateral) are the main reasons many people consider debt consolidation.A large number of credit cards can carry interest rates in the high double-digits; rates of 20% to 25% (or even more) are especially common in the subprime markets.Bad does not include the entire universe of available offers.Editorial opinions expressed on the site are strictly our own and are not provided, endorsed, or approved by advertisers.Our friend Pete has a total of ,000 of debt, spread across four accounts, like so: Not only does each of Pete’s debts have a different lender, but they all have different interest rates — some of them quite high.