Watch out for "origination fees" on loans or "balance transfer fees" (usually 3-5%) on cards.
Reducing your "credit utilization" on cards can improve your score over time. The Bad:
One bill is much easier to track than five. Your Ultimate Guide to Debt Consolidation
These use your home as collateral. They often have the lowest rates but carry the risk of losing your home if you default. Pros and Cons The Good:
Saving money on interest is the primary goal. Watch out for "origination fees" on loans or
You now focus on paying back the new loan over a set period, usually 2 to 5 years. Common Consolidation Methods
Debt consolidation works best if you have a and a credit score high enough to qualify for a lower interest rate. Most importantly, it requires a change in spending habits so the debt doesn't pile back up. These use your home as collateral
If you clear your credit cards but don't stop spending, you could end up with a loan and new credit card balances.