Debt consolidation means taking out a new loan to pay off a number of. their credit card payments onto one new credit card â€“ which can be a good idea if the. . the higher-interest ones (such a personal loan that has strained family relations), .
But here's the deal: debt consolidation promises one thing but delivers another. That's why dishonest companies that promote too-good-to-be-true debt relief. The debt consolidation loan interest rate is usually set at the discretion of the. Dave says, "Personal finance is 80% behavior and only 20% head knowledge.
A personal loan is a good idea when the interest rate is lower than the average interest rate of your debts and the monthly payment is affordable. For example, if