When you’re total debt will increases more than the 20% of your income and you think it is out of control for you to pay the different bill of different debt company.
When you have more than one credit card and the different card company charge different interest rate on the outstanding bill.
When the interest rate reduce in the market but you still need to pay higher rate as per the old agreement plan to the creditors.
These are the some situation which is deciding your plan to go for the debt consolidation.
Before you decide anything, first collect all the data related to your total debt amount and the interest rate which you paid on it.
Shopping for the company which give you the lowest rate of interest in the market for consolidation .
When you go for debt consolidation with any other company first you can check the best deal which provided by your bank or the credit card company.
For credit card different interest rate consult with your card company to lower the interest rate or to change the outstanding amount on the other card company account which helpful for you to get the lowest interest rate some time the credit card company give you relaxation by make your debt interest free for some month.
If you have car loan with 15% interest and home loan with 19% and personal loan with 12% interest with the same bank than you can go for consolidation plan with the same bank which can help you to reduce your interest rate also help you to get some extra advantage provided by the bank.
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