Consolidating your credit card debt

A loan with a longer term may have a lower monthly payment, but it can also significantly increase how much you pay over the life of the loan.

This helps eliminate mistakes that result in penalties like incorrect amount or late payments.

Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.

By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.

Most financial experts agree that a Debt Management Plan (DMP) is the preferred method of debt consolidation.

The most-recommended DMPs are run by non-profit organizations.

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