Is consolodating my student loan smart

To do this, many or all of the products featured here are from our partners. It can reduce your total debt and reorganize it so you pay it off faster.If you’re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments and due dates, debt consolidation is a sound approach you can tackle on your own.Your credit may be hurt if you run up credit card balances again, close most or all of your remaining cards, or miss a payment on your debt consolidation loan.Learn more about how debt consolidation affects your credit score.Here’s a scenario when consolidation makes sense: Say you have four credit cards with interest rates ranging from 18.99% to 24.99%.You always make your payments on time, so your credit is good.If you are struggling with student loan debt repayment options, ACCC can help sort out the confusion.

It doesn’t address excessive spending habits that create debt in the first place.In any case, the best option for you depends on your credit score and profile, as well as your debt-to-income ratio.» MORE: 4 ways to consolidate debt Use the calculator below to see whether or not it makes sense for you to consolidate.It’s also not the solution if you’re overwhelmed by debt and have no hope of paying it off even with reduced payments.If your debt load is small — you can pay it off within six months to a year at your current pace — and you’d save only a negligible amount by consolidating, don’t bother.

Leave a Reply