Is Debt Consolidation a Good Option?

Debt can be hard to handle. That’s especially true if you’re saddled with a lot of it and the interest keeps piling up. One way to help yourself out is to consider debt consolidation. Here are some signs that consolidation is the right move to make.

If You Have Multiple Debts

Consolidation only works if you have multiple things to combine, so this is the most obvious sign. If you are behind on several monthly bills, debt consolidation is likely a good choice for you. Combining multiple debts into one debt can make it easier to pay it off, as you now have only one thing to worry about instead of many.

Your Debt Has High-Interest Rates

Getting out of debt is hard enough, but when you add high-interest rates to the mix, things get so much more difficult. If your debts carry high-interest rates, you should consider debt consolidation. When you consolidate, there’s a good chance you’ll get a lower interest rate offer (or even zero interest rate). Reducing the interest can help you save heaps of cash as you deal with the debt.

You Have a Decent Credit Score

If you have a good credit score but are struggling with debt, you should probably consolidate. A good credit score will help you secure a lower interest-rate loan. The higher your score, the better offers you’ll receive. Use that score to your advantage and consolidate the debt. Not sure of your credit score. Fortera members can check their credit score for free anytime from within our online and mobile banking platforms.

If you think Debt Consolidation may be right for you, give us a call today at 931.431.6800 to discuss your options.

Original article by Chris O'Shea and adapted in partnership with SavvyMoney.