Simply put you get a new loan, which has better terms and a lower interest rate, to pay off your other debts.
If you’re currently thinking about consolidating your debts this option is probably high on your list of viable choices.
If you’re struggling to make the minimum payments on your debt, missing due dates and not making any substantial headway in the process, you’re credit score likely already mirrors your situation.
After all, these three numbers are supposed to be the quickest snapshot of your financial health and ability to repay creditors.
In turn, however, your home could be on the line if you default.When trying to deal with debt, consolidating your credit cards and low interest loans can help you save a lot of time and money.Debt consolidation is a great way to get out of debt and more often than not it can help save you from financial ruin. And how do I go about consolidating my debt so that it won’t negatively affect my credit rating?As long as you are paying the new loan consistently and on time, the credit agencies see that you are taking responsibility and working to resolve your debt problems.Debt consolidation programs usually consist of a loan to pay off the sum of your other debts.