What is Debt Consolidation Refinance?
Debt consolidation means taking out one new loan large enough to repay some or all of your outstanding debt. These are also called Cash Out Loans. You get the money, pay off your accounts, and then make a single monthly payment to pay off the new debt.
Debt consolidation makes sense for people who want to make one payment each month instead of several, and for those who can lower the amount of interest they pay by taking the new loan.
Is it a good idea to consolidate your debt?
Consolidation is similar to refinancing a loan. You can consolidate all, just some, or even just one of your student loans. Consolidating federal student loans may be a good strategy to lower monthly payments or to get out of default, but it is not always a good idea.
How does debt consolidation affect my credit score?
A debt consolidation loan affects your credit score in a positive way. In fact, to credit agencies, paying off several accounts with the consolidation loan makes it seem as if you have paid off accounts. The debt consolidation loan appears as a new credit account, but accounts paid in full are always positive.
How can we help?
This Free Debt Consolidator has been designed to help narrow down options based on your individual needs. It’s quick, it’s easy, and the more questions you answer – the more accurate your results. You’ll receive the Debt Consolidation information you need instantly without all the calls and emails!