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It may have started with one credit card, then an emergency expense you had to charge.
Maybe there was some unnecessary spending, and one card turned into another.
Some of it sounds hopeful.
it’s possible for you to help yourself get started by asking a few key questions up front.
How Does Debt Consolidation Work, Exactly?
Debt consolidation is exactly what it sounds like: Its the process of combining multiple debts into one.
After that, youll be on the hook for one payment to the lender you borrowed from.
Is it Easy to Get a Debt Consolidation Loan?
Prequalification involves a soft credit inquiry that wont hurt your credit score.
How Much Do I Need to Borrow?
Again, it all depends.
How much debt do you have?
Which specific debts do you want to consolidate?
Answering these questions can help you determine a total amount to borrow.
Lenders often set minimum and maximum borrowing limits for personal loans.
How Long Will It Take Me To Pay This Back?
Of course, the main goal of consolidating your debt is to streamline your multiple debts into one payment.
Lenders often offer loan terms ranging from 12 to 60 months, or even longer than that.
A longer loan term often means a lower payment but higher total interest paid over time.
When youre feeling overwhelmed by debt, its tempting to view debt consolidation as a quick fix.
While the process has its advantages, it also comes with potential downsides.
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