News consolidating website

26 Feb

For the length of the introductory period, you can make payments to reduce your balance without accruing interest. To avoid missed payments, penalties or default, you’ll need to create a budget that allows you to make payments on your debt consolidation loan.

Assess your current debt total by listing out your debts, including credit cards, student loans, car loans and any other accounts.

However, if you have multiple hard inquiries within a 45-day period, it’s considered rate shopping and will only count as a single credit inquiry. It’s best to stick with trusted, well-established lenders such as the ones recommended on our list.

When shopping for a debt consolidation loan, you should watch out for red flags including aggressive sales representatives, guaranteed approvals and quick-fix promises, as well as requirements such as upfront payments before loan approval or access to bank accounts for automatic withdrawals.

and you certainly shouldn’t send money with a wire transfer or prepaid card,” Detweiler cautions. Although it may be tempting, avoid using your newly cleared accounts to shop or manage household expenses.They use collateral, such as home equity used to secure a home equity loan, and generally have better interest rates than unsecured ones.If you have the collateral and can meet the requirements, a secured loan may save you money on interest as you pay down your debt.Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.Interest paid on a home equity loan is usually tax deductible, while credit card interest is not.