Consolidating student loans public and private
That can make it easier to focus on getting out of debt. People have saved thousands by consolidating higher-interest debts using a single, personal loan, this will not negatively impact your credit.Check Your Rate Now The term debt consolidation encompasses a wide range of options. Below, we’ll describe the various different ways you can consolidate your debt and explain the advantages and disadvantages of each particular option: Debt Consolidation Company There are many debt consolidation companies out there.However, you must be cautious when dealing with debt consolidation companies.Once you have agreed to the debt consolidation plan, you can’t go back, so it’s important to understand the potential consequences first.Your repayment plan might be much longer, which could cause you to pay more interest over the life of the loan even with a lower interest rate than what you had before.And if you miss a payment (or are late) you could face costly penalties and your interest rate could be increased.The reason this can be helpful to people with a lot of debt is that it can solve three of the worst problems you face: 1) High interest rates Some types of debt (particularly credit cards) can have extremely high interest rates – up to 25% or more.If you’re in that kind of situation, there’s a good chance your debt will grow faster than you can pay it off.
Instead, you will owe the debt consolidation company an amount equal to the total sum of all your debts.
3) Confusion because of too many bills Another common obstacle to getting out of debt is when the sheer number of bills you receive makes it hard to even keep track of which payment is due on which date. While there are some real benefits to debt consolidation, it’s extremely important that you do your homework and understand there’s a wide range of options when it comes to debt consolidation loans – some are good, some are bad, and some are downright predatory.
Consolidation can help with this problem by reducing the number of bills you get down to a single one. Check your rate using Ready For Zero's free debt consolidation tool.
This program is designed to allow those who work for eligible public service organizations to get something of a break on their student loans.
With student loans now the largest collective debt we have, it makes sense to look for ways to reduce the costs.