Debt Consolidation Loans Explained: 6 Things You Need to Know

Debt consolidation loans are a great way to combine your debt into one monthly payment, with less interest than you were paying on each credit card. It is a fix that will not only help you pay off your debt but save money in interest as well.

How Can A Refinance Or HELOC Help You?

You will have a better chance of being approved with a refinance if you agree to have the checks written directly to the credit card companies at closing. This is because it guarantees that you will use the money to consolidate your debt rather than spending it on other things.

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How Can A Balance Transfer Help You?

A balance transfer is an opportunity provided by credit card companies. A balance transfer is an excellent option for a debt consolidation loan if you have high-interest revolving debt.

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How Can A Personal Loan Help You?

These loans typically have a higher interest rate than the other options, but in most cases, it is still less than you are paying if you combine all of the interest payments you are making on multiple lines.

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So How Do You Decide If A Debt Consolidation Loan Is The Best Option For You?

In the end, all you can do is research to make sure you know what your options are and then make a choice based on what fits your financial situation.

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What Is A HELOC?

A home equity line of credit (HELOC) is a line of credit from the equity you have on your home. If you don't want to go through a refinance process, this is a good option because you will still pay less interest than you pay on your other lines of credit combined.

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