goldenleaffinancial

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Debt Consolidation

Debt Consolidation

Debt Consolidation is basically replacing one debt with another, at a better interest rate of course.

​So if you have 5 credit cards with a total balance of $9,000. and a credit score that will allow it, you can apply for a consolidation loan to pay off those 5 credit cards and have one simple payment going forward.

​You will not be rid of your debt but perhaps you will have better terms, lower overall interest expense and a lower monthly payment.

Getting a consolidation loan does require a better than average credit score, something not all of us have.

So if you have the credit score that allows you to acquire a consolidation loan, this may be for you.

It still ultimately comes down to the fact you will need the discipline to manage this new debt and not start adding on more, a trap all too many people fall into time and time again.

​There is a recurring theme when it comes to people opting to go this route and that is the new consolidation loan affords them a lower monthly payment, their credit card available balances go up dramatically and they feel that they can afford to take on additional debt. This defeats the whole purpose of a consolidation loan.

​If you are interested in pursuing a consolidation loan, please fill out our contact form and one of our credit counselors will be in contact with you to discuss your options. Or call 866-881-8125

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