Debt consolidation is the process of combining all your current, outstanding debt into one loan with a lower interest rate and lower monthly payment. This is also known as refinancing your debt. By combining higher interest debt into a lower interest loan, you could save on overall interest and simplify your monthly budgeting.
If you are making payments to multiple creditors every month and getting overwhelmed, you may want to consider consolidating all your debts into a consolidation loan or personal loan. This loan will pay off all your current creditors, and you’ll have only one monthly payment to one lender.
Keep in mind that with a consolidation or personal loan you are not really paying off all of your debt – you’re simply paying off the old debt you have with a new debt (loan). This is a great solution, but only if the new debt you’re taking on has a lower interest rate than the debts you’re paying off.
Choosing the right solution for tackling your debt can be stressful and confusing! Square One Financial Group is here to help you make the decision that best meets your needs and goals. Contact our Certified Debt Consultants today at (866) 611-6838 to see how one of our debt solutions can benefit you.