When you’re having problems with debt, the right solution can help you rein in your payments and save your credit from the damage of bankruptcy.At the same time, there are always certain risks and downsides to any debt solution that you use.A loan with a longer term may have a lower monthly payment, but it can also significantly increase how much you pay over the life of the loan.View the Total Cost of Borrowing Before you apply, we encourage you to carefully consider whether consolidating your existing debt is the right choice for you.Others succeed because debt consolidation is part of a bigger plan to gain control over their finances.So the first step in debt consolidation is simply to consider whether it will actually work for you.If you have questions or need help choosing the right solution for your situation, just call us at In most cases if debt consolidation is the right option in your financial situation, then there shouldn’t be too many downsides to using the process in general.Any disadvantages are usually specific to the particular method you use for consolidating – more on that below.
The different methods of debt consolidation have benefits and risks associated with each specific option, so it’s important to understand these so you can decide which way is the right way to consolidate for you.
Consolidating multiple credit accounts into one new loan with a single payment may help you lower your overall monthly expenses, increase your cash flow, and eliminate the stress of multiple monthly payments.
When you're choosing the term of a loan, consider the total amount of interest and fees you’ll pay.
So it’s important to understand the upsides and downsides of debt consolidation before sign up for anything to solve your debt problems.
The information below can help you understand the advantages and disadvantages of debt consolidation, in general, as well as the pros and cons of specific consolidation options you can use.