Before evaluating the best way to consolidate debt, do these 3 things: Millions of consumers have said yes by consolidating debt into one payment.Simply put, they get enough money to pay off those scattering bills all at once.Personal loans typically have fixed interest rates that vary depending on your credit score and the size of the loan.A personal loan is a form of unsecured debt, meaning the loan is not backed by any collateral.If you are considering asking a friend or family member for help with money, you should be willing to sit down with them, share your budget, debts, monthly payments and interest rates with them.Show them that you can afford to pay them back and how you plan to do that, including highlighting budget areas that you have already cut back or are willing to cut back.
Using credit card balance transfers to consolidate your credit card debt is another way to save money on credit card interest and make progress toward paying down your debt. Take higher interest credit card debt and transfer the balance to a credit card that has a lower interest rate.
Borrowing from family and friends to consolidate your debt is the best option when you know someone who has the resources to help you, is willing to help you, and does not need a swift repayment.
You should consider this option when you have a good relationship with someone who wants to help you and forgive the occasional late or missed payment, due to unforeseen events.
When you consolidate debt with a personal loan, you borrow money from a bank or credit union, use that money to pay off a number of smaller debts (credit cards, utilities, cell phone, etc) and then one consistent monthly payment to the bank or credit union.
There are a lot of potential lenders, so you can shop around and see which offers the best terms.