Pros and cons to consolidating credit card debt


One of the best places to start looking is the federal Direct Consolidation Loan program.

If you did borrow money for college, chances are you received a new loan each semester.

The good news is that federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.If you are swimming in debt, you’re bound to start looking for a way out.Many people see debt settlement –an option that advertises to help you pay off your debt for much less than what you owe– as a way out of their financial woes.Debt settlement is, simply put, hiring a debt settlement company to help negotiate lower payoffs on personal loans, collections, and open accounts like credit cards.Sometimes these companies misleadingly advertise their services as a way to consolidate debt — or “debt consolidation,” — but make no bones about it, this is not a When you hire a debt settlement company you are hiring them to negotiate with your lenders on your behalf.Debt consolidation allows borrowers to consolidate multiple current debts into a single new one so that you have a better overview and management of your debt.

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