Consolidating unsecured debt
The chase to catch up with your bills will never end.
Putting the credit card away would be a first step, but not the only one you need to consider before deciding that debt consolidation is your financial savior.
Next, look at your monthly budget and add up spending on the basic necessities like food, housing, utilities and transportation. However, those characteristics – effective budgeting and motivation – aren’t generally evident when people fall behind on their bills.
And that’s is where a The conventional method for consolidating debt is to get a loan from a bank, credit union or online lender.
The repayment period is normally 3-5 years, but how much you interest you are charged is the key element.
Debt consolidation is a financial strategy, merging multiple bills into a single debt that is paid off by a loan or through a management program.
If you continue to overspend with credit cards or take out more loans you can’t afford, rolling them into a debt consolidation loan will not help.
The first step is to list the amount owed on your monthly unsecured bills.
If you are falling behind paying off your credit card debt, it’s very likely your credit score is tumbling, too.
If the interest rate you get for a debt consolidation loan is not lower than the average interest rate you already were paying on your credit cards (see above), then a debt consolidation loan does you no good.