Is Debt Consolidation Right for You?

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If your debt piles up and you can't make minimum payments every month, you should look to consolidate your debt. The process requires obtaining a debt consolidation loan or credit card that lets you to consolidate your debt to a single bill. You should have lower interest rates, with smaller payments, to avoid getting deeper in debt.

Debt consolidation will combine credit cards to one single balance, with a low interest rate and low payments. 

 When thinking about credit card consolidation, watch out for transfer fees, and length of time the beginning rate applies. You really want a card with the lowest balance transfer fee, low interest rates, long introductory periods.

Always be sure to make your payments in a timely fashion. A payment may cause your interest rate to increase. And make sure to pay the balance off before your introductory rate period expires, else you'll be hit with higher interest rates, and be right where you started.

If you own property that is worth more than your current mortgage, home equity loans, aka "second mortgage", is another option. You take a loan out connected to the equity built up for your home, and it is used to pay another debt off.