Pros and cons of consolidating loans
That helps stop the bleeding: your interest costs disappear, and 100% of each payment goes towards reducing your loan balance.
You might also take on new annual fees if you open a new credit card.
Whether we like to admit it or not we have become a nation of debt junkies.
A report issued earlier this year by the US government was that the average credit card debt per household in the United States is ,607. In either event, you would use the money to pay off all of your other debts.
Here are some things you should consider before applying. If you’re struggling with credit card debt or have difficulty juggling payments on multiple loans – each with specific interest rates, conditions and balances – you may want to consider consolidating your debt.
Debt consolidation basically means collapsing all your existing debts into one new debt.
The pros Being proactive and taking control of your debt as soon as you feel it getting out of hand can save you money and help you stay in a good position to take on other loans in future, such as a home loan.