Information on consolidating your bills
If you take a loan with a three-year term, you know it will be paid off in three years — assuming you make your payments on time and manage your spending.Conversely, making minimum payments on credit cards could mean months or years before they’re paid off, all while accruing more interest than the initial principal.» MORE: Follow these 3 steps to pay off debt Two additional ways to consolidate debt are taking out a home equity loan or 401(k) loan.However, these two options involve risk — to your home or your retirement. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Our partners cannot pay us to guarantee favorable reviews of their products or services. " At Nerd Wallet, we strive to help you make financial decisions with confidence. Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower-interest payment. We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.
Learn more about how debt consolidation affects your credit score.Try a do-it-yourself debt payoff method instead, such as the debt snowball or debt avalanche.If the total of your debts is more than half your income, and the calculator above reveals that debt consolidation is not your best option, you’re better off seeking debt relief than treading water.Millions of consumers have said yes by consolidating debt into one payment.Simply put, they get enough money to pay off those scattering bills all at once.
There are many ways to consolidate all your bills: debt management program; debt consolidation loan; debt settlement; or, if the situation is too toxic, bankruptcy.