How Does Debt Consolidation Work?
There are several different ways to consolidate debt, and each works slightly differently. These include using a:
- Personal loan
- Home equity loan
- Balance transfer card
In each case, youll open the new account and use the money from your new loan to pay off your existing debts like credit cards. That leaves you with a single loan and a single monthly payment. If the interest rate on your new loan is lower than what youre currently paying on your credit cards or other debts, you can often save money in interest payments and pay off your debt more quickly.
Another benefit of debt consolidation is that it streamlines the repayment process. By putting your multiple debt obligations all with varying inter…
Read the full article at: https://www.marketwatch.com/guides/personal-loans/what-is-debt-consolidation/