Consolidating credit card debt good or bad
Debt consolidation allows borrowers to roll multiple old debts into a single new one.
Ideally, that new debt has a lower interest rate that makes payments more manageable or lets borrowers pay off the total more quickly.
I know because I’ve been there and it was unbelievably stressful at the time.
I needed a loan for around 45000 to sort out my finances, and I never got it. Anyway, this is your story, and the applicant’s story from below – he got approved based on income only.
The lender will pay off your credit card bills, and in exchange you’ll enter into a loan agreement with the lender to pay back the money.
For a credit card consolidation loan to be worth your while, you’ll want a plan that offers a lower interest rate and/or lower monthly payments than you’re currently paying to your creditors.
Many people try debt consolidation, but not all emerge better off.
Some borrowers wind up in worse shape, either because they run up their credit cards again or because their debt remains overwhelming despite the better repayment terms.
If you are consolidating debt just to get a lower interest rate without really knowing how you’re going to pay the debt off, then you are simply moving the problem around instead of facing it.
The point being that you ARE NOT ALONE here on this one.
PLEASE try not to stress yourself out over this much debt (we see that ALL the time) because the old saying still rings true; , but when you are deep in debt, it’s really stressful.
Getting a debt consolidation loan when you have bad credit can be tough, especially if you seek help from the wrong source.
While your bank or credit union may offer various personal loans for debt consolidation, it’s possible you won’t qualify if you have blemished credit.
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Before you do, let's take a look at the pros and cons of each option.