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An insider's guide to debt consolidation

More Articles:

*Is there an acceptable amount of debt to carry?
*How do I know if I need help with my debt?
*How long does credit counseling payment-reduction take?
*Can I consolidate debt onto one credit card?
*What are the benefits of consolidating debt through a bank loan?
*Is it wise to consolidate debt by refinancing a mortgage?
*How should I handle debt after I consolidate?

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How should I handle debt after I consolidate?


Unfortunately, many borrowers interpret a payment-reduction plan as a license to take on more non-mortgage debt; a few years after consolidating, these people look to consolidate again. One way to approach debt after consolidation is to use the money saved through payment-reduction to accelerate pay-down on outstanding loans. This will eliminate debt faster and may also work to raise sagging credit scores.

 


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