You may have heard about credit card debt consolidation, but what if you have other types of debts? Can you consolidate them? There are lots of different kinds of debts and many of them can be consolidated under one loan to make things simpler, cheaper, and easier on you.
What Types Of Debt Can Be Consolidated
Not every loan can be lumped into one, but many of them can be. If you are struggling with too much debt in too many places, you might consider rolling them all over into one loan. Here are some of the loans that could be consolidated.
One of the most popular, and most well known is credit card debt consolidation. Most people have more than one credit card and many people have too much debt on those cards. It’s easy enough to change things and then forget about it…until the bills start to come in.
Credit card debt can really add up because not only do you owe whatever you charged to the card but also the interest rates, which are usually quite high on the dispute credit report with Smart Credit.
Those interest rates can add up quickly and you might find that if you pay the minimum each month, you’re really only paying the interest and not paying much, if anything, on the loans at all. By consolidating the credit cards into one loan, you have one payment and a much lower interest rate so you can actually start to see a difference in the debt.
If you have a medical issue, you probably visited your primary doctor first. Then, perhaps they referred you to a specialist. You may have had a hospital visit, surgery, prescriptions, and lots of things from a variety of areas.
Now that you have recovered, you are getting bills from all of these different locations and it can be a lot to handle. Instead of trying to stave off the bills, you can get a debt consolidation loan to pay all of the medical bills at once.
There won’t be collection calls or stopped services because of your late payments that way. And you have just one loan to pay off monthly at a price you can afford.
You may have had to take out one or more student loan, perhaps on a state or federal level. And once you get done with school, you might realize that even the good job that you got isn’t enough to cover everything that is coming back to you now.
Student loans can bury you when you are just starting out in the working world, but it’s possible to get a debt consolidation loan to pay off all of those student loans from all of those locations. Then, you have one payment, which could be lower overall. However, keep in mind consolidating student loans will not reduce your interest rate, it just combines them into the pros and cons of credit card debt settlement.
If you have more than one vehicle to your name, paying the monthly payments on two or more vehicles can be a real stretch. Instead, you could get a consolidation loan for those vehicles, pay them all off so you own them, and then have just one loan payment to pay on a monthly basis.
You now own your vehicles and you don’t have to worry about missing payments there. You have a lower monthly payment than you did with the multiple vehicles and there’s a lower interest rate as well.
Conclusion | What Types Of Debt Can Be Consolidated
These are just a few of the consolidation loans that you might consider if you are in debt and are struggling to make ends meet. While credit card debt consolidation is still the most well known and popular reason to get a personal loan for consolidation purposes, if you have medical bills, student loans, or other debt, you can still consider putting them together in one place to make things easier on you, and less costly as well.