Is Debt Consolidation A Good Idea?

Debt consolidation is a good idea when you need to simplify multiple debts into one payment with a lower interest rate. Debt consolidation combines high-interest debts like credit cards into a single loan, potentially saving borrowers an average of $2,500 in interest charges. Many consumers who use debt consolidation for credit card debt report improved credit scores within six months and reduced financial stress due to more manageable payment structures.