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Does consolidating credit cards affect your credit score

There are multiple options for debt consolidation (more on this in a bit), but if you stick to a well-thought-out payoff plan, a new lower-interest loan is a viable way to pay off high-interest balances in one shot. For example, one common question about the tactic is, “Does debt consolidation hurt your credit score? “The degree to which they have a negative impact depends on how many inquiries you have over a specific period of time,” says Bruce Mc Clary, spokesperson for the National Foundation for Credit Counseling.

You may be able to get a consolidation loan with an interest rate lower than what you’re paying across all your separate debts, which means more of your monthly payment will go toward your principal balance.

These types of loans come with fixed rates and fixed payments, along with a clear payback timeline.

Of course, the interest rate you get can be a deal breaker, so shopping around and comparing offers from multiple lenders is your best strategy.

For many people battling debt like credit card bills, medical bills and student loans, debt consolidation is an effective way to reduce monthly payments, lower interest costs and ultimately get debt-free faster.