Consolidating debt affects credit

16-Apr-2017 05:53

You have multiple options for debt consolidation: Each option has advantages, disadvantages and challenges.

How you perceive debt, and how it affects your credit, depends on many factors, including how much debt you have, how well you’re able to pay it, and the kind of debt.

The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.

Consolidation works best when your ultimate goal is to become debt-free.

If credit balances are threatening to rise beyond your ability to pay, you have an option in consolidation.

With a consolidation loan, your outstanding balances are rolled into a single bill with a lower monthly payment.

How you perceive debt, and how it affects your credit, depends on many factors, including how much debt you have, how well you’re able to pay it, and the kind of debt.The option that best suits you depends on your overall debt load, credit score and history, available cash and other aspects of your financial situation, as well as your self-discipline.Consolidation works best when your ultimate goal is to become debt-free.If credit balances are threatening to rise beyond your ability to pay, you have an option in consolidation.With a consolidation loan, your outstanding balances are rolled into a single bill with a lower monthly payment.Make a budget to pay off your debt by the end of the introductory period, because any remaining balance after that time will be subject to a regular credit card interest rate.