Best debt consolidation loans

Other factors to consider before taking out a debt consolidation loan

Taking on new debt to pay off old debt may just be kicking the can down the road.

Many people don’t succeed in paying off their debt by taking on more debt unless they lower their spending.

The loans you take out to consolidate your debt may end up costing you more in fees and rising interest rates than if you had just paid your previous debt payments.

If i consolidate my credit cards can i still use them

And, if problems with debt have affected your credit score, you probably won’t be able to get low interest rates on the balance transfer, debt consolidation loan, or home equity loan.

Warning:Beware of debt consolidation promotions that seem too good to be true.

Many companies that advertise consolidation services may actually be debt settlement companies, which often charge up-front fees in return for promising to settle your debts. They may also convince you to stop paying your debts and instead transfer money into a special account.

Using these services can be risky.