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Consolidation Loans: Getting Rid of Debt

Consolidation Loans

Consolidating old debts is a type of refinancing. When there's a better and cheaper alternative to pay back existing loans, it's in a borrower's best interest to choose it. A consolidation loan provides debt holders financing to repay high cost debts. As with any loan, results and savings vary. To calculate if a loan for consolidation would save you money, look at the interest rates you are paying. Are they unreasonably high? Would grouping all your loans into one loan offer your more control? If so, there's no harm to check what interest rate a lender would offer you. This is an easy and effective loan product that thousands of Americans have used to guide them into financial security.

Eighty percent of Americans are in debt. Averaging more than $15,000 in credit card debt, over $165,000 in mortgages, and a little less than $50,000 of student loan debt, the typical U.S. household carries around $130,000 in total debt. That's almost 3 times an average American annual salary of $50,000. The billing statements filling up your email account, stacks of credit card and phone bills covering your computer desk, calling credit card providers to check your remaining balance, and payment due dates overcrowding your daily calendar activities are warnings signs that you are at an extremely high risk to miss a payment, accrue charges, and suffer a change in interest rates. To avoid the added stress of more debt, there are other ways to manage multiple debts.

71 percent
According to a Federal Reserve report, this is the percentage of Americans ages 18 and up who own a smart phone and have access to online financial services and products.