Is consolidating credit card debt good
Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.
If you have the collateral and can meet the requirements, a secured loan may save you money on interest as you pay down your debt.
“No lender should charge you upfront before you get the loan … A debt consolidation loan can wipe the slate clean and allow you to start fresh with zero balances on credit cards and other credit commitments.
and you certainly shouldn’t send money with a wire transfer or prepaid card,” Detweiler cautions. Although it may be tempting, avoid using your newly cleared accounts to shop or manage household expenses.
However, a longer loan term means you may pay more interest total.
There are two types of debt consolidation loans: secured and unsecured.