Debt consolidation is controversial but I’ve used it twice and it’s saved me thousands. https://www.youtube.com/watch?v=Io1JV53oOlA&index=4&list=PLjsZ3KrTlZozfKrkG8uKVUa_yoC6xUVvn
I was flat broke in 2009. I destroyed my credit score and owed over $15,000 in credit card debt and other loans. I knew what everyone said about debt consolidation loans. I knew the risks but I was paying hundreds a month in interest and I needed a way out.
By lowering my interest rate just 5% with a debt consolidation loan, I was able to immediately save $40 a month on payments. By putting that money back into my debt payoff plan, I was able to save thousands and pay off the consolidation loan years early.
I’m not alone. The average credit card debt is over $15,000 and Americans pay hundreds in just interest every month. Most debt experts will tell you to avoid consolidation loans but the fact is, they work.
I’ll walk you through the process of getting a debt consolidation loan on bad credit. I’ll reveal the risks and pitfalls to avoid before showing you how to get a better rate and some debt payoff strategies to get out from under the loan.
I’ll be using the PersonalLoans site in the video, a lender I’ve used twice before https://peerfinance101.com/personalloans
Here’s the list of debt consolidation sites I’ve used or have reviewed: https://peerfinance101.com/list-peer-to-peer-online-loans-sites/
Debt consolidation isn’t the best place to be but you can use it to your advantage. Know the risks. Know how to do it right and get your finances back on track.
– The risks of debt consolidation and how to avoid the traps
– Step by step to getting the best rate on your debt consolidation loan
– How to do debt consolidation right and pay off your debt early
– The hidden benefit to debt consolidation that nobody talks about
Don’t forget to click through to the debt payoff playlist above and follow the entire series. I may eventually turn this series into a paid course but you can watch it all free right now. I start out by revealing the debt payoff strategies that will work with any budget, even on low income, and finish by showing you how to get a perfect credit score.
SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos
Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#debt #loans #debtconsolidation
What do you think are the benefits and disadvantages of using debt consolidation loans?
Are there early payoff penalties on debt consolidation loans?
I consolidated, saved over 360 a month.
To be honest, I wasn't the biggest fan of consolidating debt a while back because I feel as you mentioned giving someone an out, but not really. And that most people will reuse that old paid off credit. But if someone is working hard on the process of getting out of debt and is really in it, I can see it being helpful in the amount of interest it can save them. Great video, so much value!
Actually I've been considering consolidating my three credit cards from 20%… Gave them a call and they offered me 0% on two cards and 5% on my highest card… Which actually averaged out to 2.5%.
That's down from my 18.99% to 20% on the cards.
Tomorrow I'm going to get them a call and get the loan. Thank you for talking about the pros and cons! The only con is if you use the money on something else ,or you rack your cards again.
Haven't had to consolidate debt, but I appreciate the valuable insight into what to do and what to consider. Thanks Joseph!