Consolidating car payments

First, you may be able to get a lower interest rate on your consolidation loan than you were paying on your various other debts.

With interest rates on credit cards often ranging from 12-18 percent, that can produce a real savings.

A consolidation loan can reduce your monthly debt payments in two ways.There may be other wrinkles involved - for example, some of your creditors may be willing to write off part of your debt in return for an immediate payoff - but the key thing is that you're simplifying your finances by exchanging many smaller debt obligations for a single bill to be paid every month.What types of debts can be covered by a debt consolidation?A solid, reputable company will offer multiple bill consolidation plans and share the features, benefits, and risks of each with you.In addition to helping you determine the best way to consolidate your debt, a good company will offer financial education, guidance, and support as you make your way out of debt - setting you up for a lifetime of strong debt management and financial success.

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