Editorial Disclaimer

Simplifying Debt Consolidation

Simplifying Debt Consolidation

What exactly is debt consolidation? While many may have heard of this term, to a consumer that is new to credit, the whole process can be a bit confusing.

Debt consolidation involves combining outstanding debts into just one debt, which can result in lower monthly payments. So, what exactly does that mean? Say a consumer has two different loans or credit lines; this means two completely separate monthly payments at possibly different rates and terms. With a consolidation loan, you are combining those two debts into one loan and one payment.

What is the main purpose? There are a couple different reasons a consumer would be looking into a consolidation loan. One being to lower the interest rates, and therefore, lowering the monthly payment that they would usually have to make. Another reason is just the simplicity. It is much easier to remember to make one payment instead of multiple, simplifying your monthly budget.

Debt consolidation loans can be extremely beneficial to consumers with multiple debts that they are looking to conquer. Just remember, the point is to reduce your debt. Consolidating your debt doesn’t work if you just continue to gather more; stay disciplined in reducing your debt by not accruing more to make these loans work for you!

Follow Us Here!

Editorial Disclaimer: Information in these articles is brought to you by CreditSoup. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles. The information is accurate to the best of our knowledge when posted; however, all credit card information is presented without warranty. Please check the issuer’s website for the most current information.

Advertiser Disclosure

CreditSoup is an independent, advertising-supported comparison service. The offers that appear on this site are from companies from which CreditSoup receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). CreditSoup does not include all companies or all offers available in the marketplace. CreditSoup may use other proprietary factors to impact offer listings on the website such as consumer selection or the likelihood of the applicant’s credit approval.

Editor’s Rating

Our editors review each credit card and provide our ratings based on the features the credit card offers consumers including the fees, interest rates, benefits, rewards, and how it compares to other credit cards in its category. Card ratings may vary by category as the same card may receive a different rating based on that category.

CreditSoup.com may be compensated by companies mentioned on our site when a consumer’s application is accepted or approved by the company.