Consolidating Debt Could Secretly Save You Thousands

Types of Debt Consolidation

There are several methods to consolidate debt, each with its own benefits and considerations. One common option is a debt consolidation loan, which involves taking out a new loan to pay off existing debts. This can be particularly beneficial if the new loan offers a lower interest rate than your current debts. Another option is a balance transfer credit card, which allows you to transfer existing credit card balances to a new card with a lower interest rate, often with an introductory period of 0% APR. Additionally, home equity loans or lines of credit can be used to consolidate debt, leveraging the equity in your home to secure a lower interest rate.