Does consolidating your credit cards mean dating someone with herpes anywhere
Scams abound.)Consolidating credit cards with high balances using an installment loan — a loan with fixed monthly payments — may actually benefit your credit rating, especially if you use the loan to pay off credit cards that are near their limits.
Among the options to help speed up debt repayment are debt consolidation and debt refinance. Read more: 4 easy ways people with limited or low income can save for retirement Debt refinancing involves moving your debt to a lower interest rate vehicle, either by transferring credit card balances to a credit card with a lower interest rate, transferring debt to a home equity loan product or transferring debt to a lending company.
The answer depends on how you consolidate — and what you do afterwards.
Debt Consolidation Loans Getting a new loan to pay off other debts is the most popular way to consolidate.
Your bank or credit union may also be willing to help you consolidate, and there are some online lenders that offer consolidation loans.
(Tip: Triple check to make sure you are dealing with a reputable site if you are shopping for a loan online.
The biggest risk, though, is that it’s easy to run up new balances on the cards that have been paid off in the consolidation.