Consolidating credit card debt personal loan
Home equity debt consolidation loans, a type of secured debt consolidation loan, offer a fixed interest rate.Interest paid on a home equity loan is usually tax deductible, while credit card interest is not.
The amount you pay on your debt consolidation loan each month will vary depending on the amount you borrow and how many years you will take to repay it.
However, if you have multiple hard inquiries within a 45-day period, it’s considered rate shopping and will only count as a single credit inquiry. It’s best to stick with trusted, well-established lenders such as the ones recommended on our list.
When shopping for a debt consolidation loan, you should watch out for red flags including aggressive sales representatives, guaranteed approvals and quick-fix promises, as well as requirements such as upfront payments before loan approval or access to bank accounts for automatic withdrawals.
Track your spending to see where your money goes each month, identifying areas where you may be able to cut back.
Compare your debt payment obligations and your spending to create a budget and determine how much you can realistically pay on your debt each month.