Consolidating direct loans good idea
That can lead to a domino effect where you miss payments, your interest rates get raised, and then you can’t stay above water.
A consolidation loan can sometimes lower your monthly payment, and that can give you enough breathing room to get back on track.
For example, if you were transferring ,000 to the new card you would pay 0 to 0.
Since most people struggling with debt do not have excellent credit scores, they’ll have to pay high interest rates and fees which will burn a large percentage of their total cash flow each month. Furthermore, even if you get what seems like a good interest rate, there is still a significant risk involved in dealing with a debt consolidation company.And you will pay a monthly payment to them, which will go toward paying the principal of the loan as well as interest and fees.If you can get a low interest rate, this may be a good option.However, you must be cautious when dealing with debt consolidation companies.Once you have agreed to the debt consolidation plan, you can’t go back, so it’s important to understand the potential consequences first.