repairing a credit score of 650

What is a debt consolidation loan?

A debt consolidation loan is a new loan issued from one creditor to pay off a number of loans from a number of creditors.

Typically, a debt consolidation loan can turn an unmanageable debt load into one where the payments are spread out over a longer time period with lower interest rates, making them more manageable.

Benefits of a debt consolidation loan

repairing a credit score of 650Benefits of a debt consolidation loan are:

  • The convenience of paying only one creditor.
  • A lower monthly bill.
  • To shop for a lower interest rate and more favorable terms.
  • An alternative to bankruptcy.
  • To possibly save your credit.

Shop around

There are many sources for debt consolidation loans so spend some time and do some comparison shopping.