Debt consolidation can be very effective in certain situations. It’s essential to explore all your options for getting out of debt before committing to consolidation.
Also, be aware that there is more than one way to consolidate. You can use a debt consolidation loan or a debt consolidation program. Both offer many of the same benefits, but the loan requires new financing, while the program does not.
Generally, a debt consolidation loan works best for someone with good credit and a relatively low amount of debt compared to their income. This allows you to qualify for the loan at the lowest interest rate possible.
With a debt consolidation program, you do not have those limitations. You can enjoy low rates and reduce your total payments, even if bad credit or too much debt would prevent you from consolidating with a loan.