When I destroyed my credit and fell deep into debt, I thought the only way out would be bankruptcy. I owed tens of thousands on credit cards and home mortgages from rental properties.
One resource helped me to get out of this debt nightmare. It helped me put most of my debts into one bill as well as lower the rate and my monthly payments. It was a debt consolidation loan.
What is Debt Consolidation?
Debt consolidation is just a technical term for getting a loan to pay off your other debts. You’re ‘consolidating’ your other debt into one loan.
How Does the Fed Affect Debt Consolidation?
The Fed actually tells us when it is going to increase or decrease interest rates. That means interest rates on longer-term loans could go up as much as 2.5% to 3% over the next year.
How Much Will Debt Consolidate Cost Next Year?
That increase of 1% on the Fed Funds Rate might not seem like much but it will mean a big jump in other loan rates and could make loans unaffordable for a lot of borrowers.
How to Consolidate Debt and Save Money Now
1. Take a hard look at your budget and spending. This has to be the first thing you do. 2. List your debts by interest rate and amount. This is important because you might not want to consolidate all your debts.
3. Apply for a loan on at least two sites. It won’t affect your credit score and you’ll make sure you get the lowest rate available. 4. Borrow only as much as you need to pay off your debt. This isn’t an excuse to go out shopping.