This not only simplifies the payments, but can also provide real debt relief by reducing those payments as well.
First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.
With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.
While some consumers choose to create a budget and plan to pay off their bills on their own, for others going it alone is an overwhelming task.
Another option is to seek the help of a debt relief company.
Over the next few years, Anne experienced a number of financial set-backs.
She opened another credit card to help pay for a major car repair (00) and another to cover expenses when her roommate moved out with no notice (00). As a teacher, she thought she had job security, but her state had a budget crisis and teachers with little seniority were the first to go.
" Taking out a loan to pay off unsecured credit balances is an option that many people consider.
But continuing to borrow money to pay off your bills makes debt and bill consolidation more difficult and is like placing a small bandage on a growing woun.
Other benefits may include lower interest rates from your creditors, waived fees, stopping the collection calls and paying off your debt faster than on your own. She graduated with a small balance on two cards: 00.