Advantages of Debt Consolidation

Advantages of Debt Consolidation

Depending on your debt and other factors such as your home equity or income, you will wish to explore various financing options for the consolidation of debt, such as:

Personal Loan

Consider a loan that is not secured by collateral and is specifically designed for debt consolidation purposes.

Transfer Credit Card Balance

Consolidate multiple balances with high-interest onto one card with a relatively lower rate.

Home Equity Line of Credit

Convert the equity in your house into a revolving personal line of credit (LOC) with a low rate of interest and repay higher rate balances.

Advantages of Debt Consolidation

  • Lower Rate of Interest: When you consolidate debt balances, there is a good chance you will be able to receive a lower rate.
  • Easier to Handle: With multiple debts transferred into one place, you will have fewer payments to make each month.
  • Better Credit Score: Credit utilization basically means your existing debt compared to the credit amount you have been given, and it is a factor in your score. As your debt reduces, your utilization to reduces, and your credit score could increase as a result.

See if you Qualify