Tips on refinancing and consolidating debt
The lenders will calculate your risk and either approve or deny based on what your credit history shows.
The lower your credit score is, though, the higher the interest rate will be — so make sure to take that into consideration if you go this route.
Another way to consolidate debt is to take out a that you can use to pay off your various debts.
From there you can move on to making a plan to get your debt paid off as soon as possible. Here’s what you need to know before you agree to consolidate or refinance your credit card or other consumer debt.
A basic debt consolidation company will help you to move some or all of your debt to one place with a lower interest rate and a set number of months for the term of the loan.
Again, when looking at debt consolidation companies it’s important to understand the terms and conditions of the loan before signing on the dotted line.
It’s important before agreeing to any type of debt consolidation that you understand what you’re walking into.
Not all debt consolidation plans are as beneficial as they might first seem.
For instance, if you have credit card balances with interest rates in the 15% to 20% range, you could refinance those balances to a lending company such as Sofi, Prosper or Lending Club and get a lower rate, typically between 6% and 12% depending on your credit history.