Here are the downsides of debt consolidation, in general: Although all debt consolidation works in largely the same way, there are several different methods you can use that do the same thing.
The different methods of debt consolidation have benefits and risks associated with each specific option, so it’s important to understand these so you can decide which way is the right way to consolidate for you.
Free Resource: Request an invitation to join Dominate Your Debt—Laura’s private Facebook Group A personal loan is money you borrow to pay for just about anything, such as your wedding, a dream vacation, a new computer, medical bills, or to consolidate other debts.
There are two main types of personal loans: secured and unsecured.
You’ll find out the best places to apply for a personal loan and how consolidating affects your credit score.You must consider all of the cons of debt consolidation before making any decisions.Debt consolidation isn't the best solution for everyone.Since you will only have one payment and one interest rate that is lower, your monthly payout is going to be much less. The potential for more debt if you are not careful.Since you will be freeing up money, you will have more to spend.
See also: 5 Ways to Get a Loan With Bad Credit You can get a personal loan at most banks, credit unions, and a variety of online lending companies.