Consolidating credit card debt for students lasting effects of dating violence
The main benefit of consolidating government-backed student loans is streamlining the payment process.
The interest rate for your new consolidated loan will be based on what your past interest rates were and will most likely not be lower.
While debt consolidation is mainly a method of lowering or eliminating mounting debt, it can also have a positive effect on your credit score.
Beyond helping you reduce your number of monthly debt payments and save on interest over the life of your loans, debt consolidation can help you eliminate or drastically reduce your total debt over time.
As you roll revolving credit debt into a debt consolidation loan, and if you keep your balances on those accounts low, this can help to reduce your credit utilization and in time help boost your credit score.
While you can consolidate many different types of existing debt, it is important to first know what the interest rate is on your current loan in order to see if debt consolidation will be helpful.
If the balance on that card is ,000, your credit utilization ratio is 50%.
It is commonly recommended to keep your credit utilization under 30%.
Closing revolving credit accounts will increase your overall credit utilization ratio—which will impact your credit scores.It is important to make sure that your credit counseling organization makes all payments for you on time.Credit counseling organizations typically make the agreed-upon debt payments for you each month, and so the responsibility is on them to make sure they pay each bill on time.For people using a debt management plan for consolidation, it is important to fully understand your agreement with your credit counselor.It is also important to know whether you are working with a credit counselor from a not-for-profit organization, or if you are working with a for-profit debt settlement/consolidation firm.