When is debt consolidation worth it?
Debt consolidation means closing one or more existing loans with a new loan, usually at a lower rate or longer term, to reduce the monthly payment. It combines several debts into one.
It's worth it if you get a lower CAT than the average of your current loans, or if you want a single payment. Compare the total cost, not just the monthly payment.
- ✓Combine several loans into one payment
- ✓Possibly a lower rate than your current loans
- ✓Amounts from $20,000 to $800,000
- ✓Extended terms for a lower payment