The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.A debt consolidation loan is a good strategy if you: In this article, you can read about: Nerd Wallet’s top lenders for debt consolidation How to compare debt consolidation lenders How to consolidate debt successfully If your credit is good, you can apply for a 0% interest credit card and transfer your existing balances to it, which could save you money.With a debt consolidation loan, a lender issues a single personal loan that you use to pay off other debts, such as balances on high-interest credit cards.You’ll pay fixed, monthly installments to the lender for a set time period, typically two to five years.Debt consolidation is a strategy to roll multiple old debts into a single new one.Ideally, that new debt has a lower interest rate than your existing debt, making payments more manageable or the payoff period shorter.That said, it can be a tedious process and incredibly overwhelming to find a company to trust when a quick Google search turns up so many companies offering similar services.
This type of credit card charges no interest for a promotional period, often 12 to 18 months, and allows you to transfer all your other credit card balances over to it.
If you're ready to take control of your credit card debt, one thing is certain: you're not alone.
A 2015 Nerd Wallet study reports that the average U. credit card debt totals ,675, and that doesn't include other types of consumer debts such as auto loans.
Debt consolidation loans allow borrowers to roll multiple old debts into a single new one, ideally at a lower interest rate.
Compare loans for debt consolidation and learn about your options for consolidating debt.