What is debt consolidation? Its rolling several debts like credit cards and medical bills into a single payment at a lower interest rate. Ideally, this is part of a plan to become debt-free.
When should I consolidate? Debt consolidation is a good idea if you can qualify for a lower interest rate that makes payments more manageable or gets you out of debt faster. Its not a good idea if you are likely to run up debt again or if the debt is overwhelming.
How can I consolidate? Two common ways are balance transfer credit cards and personal loans. What works best may depend on your credit score. If your credit score is good to excellent, look for a 0% balance transfer credit card (be sure to pay off the balance before the 0% period…
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