Advice On Debt Consolidation

Written by Liza Hartung
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The best advice on debt consolidation that I can give is to stick with it. Don't consolidate only to ring up more debt with new credit cards. I also suggest that you go meet with a financial planner. This is a good idea for almost anyone. People who can barely make ends meet definitely need this assistance. People who are making a lot of money can also use advice from someone like this so that they can invest properly and have enough money to live a good life when they retire.

Most anyone who gives you advice on debt consolidation will tell you to look for a low interest rate. This will depend on your current financial situation and your current credit report. If you don't make a lot of money or your credit report is poor, or both, you will likely have a high interest rate. However, don't take what first comes your way. Even if you know you aren't going to get something fantastic, you need to compare.

Seeking Advice on Debt Consolidation

Another thing you will want to do when you consolidate your debt is pay more than the minimum monthly balance every month. When you get your consolidation loan, check and see how much interest you would be paying if you took the full amount of allotted time to pay it off. I currently have one of these loans out and if I take my full two years, I will be paying over $800 in interest alone.

The quicker you pay off your debt, the less interest you will be paying. Your interest accrues monthly. Therefore, if you are able to pay off your entire debt loan in a matter of months, you have saved yourself months to years of added interest. You will get this advice on debt consolidation from anyone who knows what they are doing with money.


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