Consolidating debt into
If the interest rate on the new loan is lower than that on the previous ones, this can save the debtor money on his or her monthly payments.
If used wisely, debt consolidation can be a lifeline.
If that’s not bad enough, you’ll end up shelling out ,080 to pay off the new loan versus ,392 for the original loans—even with the lower interest rate of 9%.
This allows the debtor to make a single regular payment, rather than several smaller ones.You are only restructuring your debt, not eliminating it.You don’t need debt rearrangement, you need debt reformation.Something has to change, and you’re considering debt consolidation because of the allure of one easy payment and the promise of lower interest rates.The truth is debt consolidation loans and debt settlement companies don’t help you slay mammoth amounts of debt.