What is the downside of consolidation?
You may pay a higher rate Your debt consolidation loan could come at a higher rate than what you currently pay on your debts. Extending your loan term could get you a lower monthly payment, but you may end up paying more in interest in the long run.
Is debt consolidation good or bad?
Debt consolidation can be a lifeboat when you feel like youre drowning in an ocean of monthly debt payments. It can help you really simplify your finances, and the smaller total payment might be easier to fit in your monthly budget.
What is bad about debt consolidation?
Consolidating your debt can lower your monthly payments, but it can also cause a temporary dip in your credit score. Two common debt consolidation approaches include getting a debt consolidation loan or a balance transfer card.