The term of a debt consolidation loan really depends on the amount you owe and the monthly payments you can afford.The longer the term, the lower the monthly payments are on the same amount of debt.Choosing this option over the others is usually a matter of preference weighed against with your credit score and financial situation.The information below can help you understand how a debt consolidation loan works, how you can use it to overcome your challenges with debt and what you need to know about the risks involved with using this method.Once the introductory period expires, the rate you’ll see on a balance transfer card is usually higher than on a personal loan.
Still, that doesn’t say anything about the term (how many payments the loan extends for) and interest rate you should aim for.
Debt consolidation loans allow borrowers to roll multiple old debts into a single new one, ideally at a lower interest rate.
Compare loans for debt consolidation and learn about your options for consolidating debt.
The interest rate depends on your credit profile, and it usually doesn’t change during the life of the loan.
A debt consolidation loan is a good strategy if you: In this article, you can read about: Nerd Wallet’s top lenders for debt consolidation How to compare debt consolidation lenders How to consolidate debt successfully If your credit is good, you can apply for a 0% interest credit card and transfer your existing balances to it, which could save you money.