Debt consolidation can simplify payments and potentially reduce interest rates.
But it doesn’t address the underlying spending behaviors that lead you to building up the debt in the first place.
Balance transfer credit cards offer low promotional rates but require discipline to pay off before rates increase.
Personal loans for debt consolidation typically have lower rates than credit cards but longer repayment terms.
Home equity loans offer low rates but put your home at risk if you can’t make payments.
Consolidation only helps if you stop adding new debt and focus on paying off the consolidated balance.
Address the habits and circumstances that led to debt accumulation to prevent repeating the cycle.
Debt consolidation can provide the motivation and structure needed to become debt-free.
