If you find yourself drowning in multiple credit card payments, debt consolidation can help. This is the process of combining all of your debt into one, easy-to-manage monthly payment. It’s a stress-free way to gradually eliminate your credit card debt.
Not only can you save money with a lower interest rate, but you could also lower your monthly payments. Most debt consolidation loans have longer loan terms, giving you more time to pay off your debt. Learn more about debt consolidation and how it can benefit you below.
If you could cut your interest rate in half, would you? That’s exactly what loans can do for you. While credit card interest rates typically range between 20 and 30 percent, loans are much lower. In fact, you could be paying between 5 and 15 percent in interest for the same debt.
This leads to potential savings in the thousands. Instead of juggling multiple credit cards, each of which have high rates of interest, you could make one monthly payment with a low interest rate.
Your total savings depend on a few factors, like the type of debt you wish to consolidate.
Some sources of debt like student loans have lower interest rates than others.
To get a better idea of what your monthly payment would be, you can use a debt consolidation calculator. You will need the following information:
- Total amount of debt
- Length of the loan
- Interest rate