Traditionally debt consolidation just involves taking out a personal loan, or a special debt consolidation loan, in order to pay off your debts, and convert them into a single payment. The benefits of this are obvious, in that they allow you to spread out your payments over a long period, decreasing your regular payments. However, you do tend to end up paying more overall, so careful consideration is needed.
However, there are more ways in which you can consolidate your loans now. One quite popular way is to transfer all of your debts onto a credit card. Obviously not just any credit card will do because they can charge a hell of a lot of interest. There are credit cards specifically designed for this, though, that give you an extensive period in which you can pay back your debt interest free.
There are several advantages to doing it this way. It allows you to pay off large amounts of debt quickly without paying any interest on top of it. The other benefit is how flexible it is. Though to get the most out of it you should pay off as much as possible within the interest free period, you can just get away with making the minimum payments, and any more you feel you can afford on top of that.
There are some dangers with this however: when your interest free period runs out you may need to switch to a better plan to pay back the rest, and it's not guaranteed that you will be able to. You may end up paying back the remaining debt with an APR of 18%!
There are options for repaying your debts suited both to wanting to pay off a lot quickly, or wanting to repay over a longer period in smaller instalments. Before signing up to any of these agreements, however, you should always seek professional advice; this applies especially if you are finding you cannot deal with the debt you have.
However, there are more ways in which you can consolidate your loans now. One quite popular way is to transfer all of your debts onto a credit card. Obviously not just any credit card will do because they can charge a hell of a lot of interest. There are credit cards specifically designed for this, though, that give you an extensive period in which you can pay back your debt interest free.
There are several advantages to doing it this way. It allows you to pay off large amounts of debt quickly without paying any interest on top of it. The other benefit is how flexible it is. Though to get the most out of it you should pay off as much as possible within the interest free period, you can just get away with making the minimum payments, and any more you feel you can afford on top of that.
There are some dangers with this however: when your interest free period runs out you may need to switch to a better plan to pay back the rest, and it's not guaranteed that you will be able to. You may end up paying back the remaining debt with an APR of 18%!
There are options for repaying your debts suited both to wanting to pay off a lot quickly, or wanting to repay over a longer period in smaller instalments. Before signing up to any of these agreements, however, you should always seek professional advice; this applies especially if you are finding you cannot deal with the debt you have.
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