What is Debt Consolidation?

These days, everybody wants to get debt under control. Some think that debt consolidation programs will help them.

What exactly does debt consolidation accomplish? You put all your debt into one place - hopefully under better terms than you previously had. With a debt consolidation strategy, you might be able to pay less each month. However, there are risks and tradeoffs.

Debt consolidation programs can lead to higher interest costs throughout your lifetime, so they might be a bad idea. You can also lose your home if you use a second mortgage as part of a debt consolidation strategy.

Before you move forward, learn how debt consolidation programs work and what to watch out for.