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FAQ's About Debt Consolidation
Looking to manage your financial well-being and consolidate your debt? Debt consolidation services can get you on the right track with reasonable repayment plans that reduce interest rates and fees and help you simplify monthly payments. In addition to comparing the top debt consolidation services, we've compiled some of the most commonly asked questions about debt consolidation.
Debt consolidation refers to a financial strategy that combines high-interest debts into a single, lower interest monthly payment. Consolidation loans have fixed terms and fixed interest rates, so you can take control of your debt, know exactly when you will be debt-free, and pay off your debt faster.
Those looking to consolidate debt usually have two different options. A 0% interest, balance-transfer credit card involves transferring debts onto the card and paying the balance in full during a promotional period. Another type of debt consolidation provides a fixed-rate personal loan in which borrowers use the money from the loan to pay off debts before paying back the loan in installments according to new terms.
Debt consolidation can help improve credit if it helps someone make payments on time while also reducing the amount of money owed on different accounts. However, credit can suffer if the person continues to run up credit card balances again or miss payments.
The best debt consolidation service for you will depend on several factors, including the amount of debt, type of dept(s), financial history, and what type of terms you are looking for. Those looking for a quality debt consolidation service should consider these factors and review the different options using our comparison and in-depth reviews.