Start Benefits to consolidating debt

Benefits to consolidating debt

For example, if you owed $10,000, you might offer the creditor a lump-sum payment of $5,000.

The pros for debt consolidation are obvious: You are simplifying the process of paying your bills.

You make one payment to one lender with one deadline every month in place of multiple payments to multiple creditors with multiple deadlines.

So if you are delinquent on several credit cards or bills (e.g.

For people who feel helpless with their financial situation and don’t want to declare bankruptcy, debt settlement could be the short-term answer.

If you fall behind on one credit card, it can be an uphill struggle to catch up.

When it reaches the point where you’re only making minimum payments on one or more of the bills, then it’s time to consider debt consolidation.

In the meantime, you likely will be racking up costly late fees and interest charges on all your debts.