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Consolidating business debt

Debt consolidation loans can be a great option, not only because it streamlines monthly payments, but also because, in many situations, you may get a reduced interest rate and lower total monthly payment.

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That makes sense for a lot of people.” She added: “But some people would rather tackle a debt management plan themselves.While consolidating debt certainly has merits, it is not the right choice for every individual.Above all, the approach has to match the need and the comfort level of the borrower.“There may be restrictions by the lender, but generally, most debts can be consolidated or settled.” You can take out a personal loan to pay off existing debts and then work to pay off that loan over time.This makes the most sense when the personal loan has a lower interest rate than you’ve got across your existing debts.The specifics of how debt consolidation works will vary by the type of debt you have and the method you choose.

“Depending on the type of consolidation, there are firms that will negotiate any sort of debt that’s out there,” said Rod Griffin, director of consumer education for the credit bureau Experian.

By using debt consolidation loans, you can save considerably — sometimes up to 40 percent of the total debt.

Enter your current debts into our loan calculator to start creating a plan to eliminate your debt.

C., said this topic comes up “pretty frequently” with her clients.

“Most of my clients have credit card debt,” she said.

(We’ll get into the details of those options later on.) No matter what strategy suits you best, the idea is the same: Lump together all or most of your debts into a single payment as a way to save money, simplify your finances … For example, if you have multiple high-interest credit card debts and outstanding medical bills, you may want to take out a personal loan to repay those debts.