Consolidating debts pros cons

Though there are an assortment of techniques to reduce debt and make it more manageable, debt consolidation and bankruptcy are two of the most common.Debt consolidation, which could be accomplished through a nonprofit credit counselor, turns an assortment of unsecured credit card debts into a single, affordable monthly payment that eliminates debt in 3-5 years.

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Trying to arrange your own repayment plan usually requires a solid credit score.Also remember that bankruptcy severely damages you credit score and makes it difficult to borrow money or buy a home for years after the case is resolved.Debt consolidation can be a good option if it offers a clear path to financial stability.Whatever type of debt consolidation loan you pursue, a good credit score is usually necessary for approval.The higher your score, the lower your interest rate is likely to be.

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