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Debt consolidation is worth considering if you are drowning in debt and all the interest you’re paying isn’t helping. However, debt consolidation only works when you have a plan in place to ensure its success, and when you can avoid the common pitfalls that come with taking out another loan to pay off existing bills.
Key Takeaways
- Debt consolidation takes place when consumers use a new loan to pay off all their existing bills.
- This new loan is typically a personal installment loan with a fixed interest rate, fixed monthly payment, and a set repayment plan.
- While personal loan details vary, many come with competitive fixed interest rates, flexible repayment terms, and no hidden fees.
Pros of Debt Consolidation
Read the full article at: https://www.investopedia.com/pros-cons-debt-consolidation-8424036