Is consolidating debt a good idea

If you do end up choosing to consolidate your loans, make sure that the company you work with is reputable and will walk you through every step of the process.Lorraine was able to find a trustworthy company through recommendations from her friends.She chose them because they came recommended by colleagues at her nursing union. I would break down on the phone and my advisor would help me feel that everything would be ok,” she says. It was a weight was lifted off my shoulders.” Some debt consolidation stories like Lorraine’s may have happy endings, but the practice isn’t good for everybody.

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Lorraine didn’t quite understand the process, and the company? “They failed to communicate clearly with me,” she says.

“I thought I was chipping away at the debt, but it just grew and grew.” Lorraine and her husband decided to turn to another debt consolidation company for help.

After that, she found herself needing to care for her aging mother.

“I can honestly see how people who take their own lives feel,” Lorraine says.

And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free. Our partners cannot pay us to guarantee favorable reviews of their products or services. " At Nerd Wallet, we strive to help you make financial decisions with confidence. Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower-interest payment.

We believe everyone should be able to make financial decisions with confidence. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research.

Your credit may be hurt if you run up credit card balances again, close most or all of your remaining cards, or miss a payment on your debt consolidation loan.

Learn more about how debt consolidation affects your credit score.

If you don’t want to pay more, then it’s time to consider other options.

This could include changing your spending habits or seeking help from a financial planner to see what your options are.

Try a do-it-yourself debt payoff method instead, such as the debt snowball or debt avalanche.

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