Different Ways to Get a Debt Consolidation Loan

There are many different ways you can do debt consolidation, and each way has its own pros and cons.  

Still, there are some general advantages and disadvantages of debt consolidation that you need to be aware of before hopping in.

Repay your debt sooner 

A consolidation loan has a clear payment schedule with an end to it, and although with a credit card you might have a lower monthly payment, consolidations could help your finances more in the long run. 

Make your finances more simple 

Let’s say you had debt from 2 different credit unions, 3 different credit card companies, and medical bills that you and indebted to. 

A consolidation loan will basically pay off all these and you’ll just need to focus on paying off the new loan.

Get a lower interest rate 

According to creditcards.com, the average interest rate on a credit card is around 16.20%. 

Meanwhile the average rate on a personal unsecured loans (a popular method of debt consolidation) can go as low as 11%.

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