Consolidating loans from different lenders
You want to shop until you find a debt consolidation loan that provides the fees and interest rates with which you are comfortable.
Remember, the goal is to pay down your debt as quickly as possible.
When you take out a debt consolidation loan, you combine all or some of your debt into one loan.
You do not want a monthly payment that will represent a financial struggle.
Before meeting with a debt consolidation specialist, make sure that you know exactly how much money you can afford to spend each month on paying down your debt. It is not pleasant to admit that you need help paying back your debts.
First, when you take out one of these loans, your three-digit credit score will fall even further. Lenders determine who gets loans and at what interest rates based on their credit score.
If your credit score is poor, you might struggle to obtain car or mortgage loans.