Debt consolidation is the process of combining multiple debts into a single, new loan. This can be done through a variety of methods, including a debt consolidation loan, a balance transfer credit card, or a debt management plan. Americor is a non-profit credit counseling agency that offers debt consolidation services.
Debt consolidation can be a helpful way to reduce interest rates, simplify monthly payments, and get out of debt faster. However, it is important to weigh the pros and cons carefully before consolidating your debts. In some cases, debt consolidation may not be the best option. For example, if you have a high amount of debt and a low credit score, you may not qualify for a debt consolidation loan with a low interest rate. Additionally, debt consolidation can sometimes lead to higher fees and longer repayment terms.