Consolidation of Debts
If you're trying to sort out your debt problem you first need to know exactly what debts you have.
If you owe money on a couple of credit cards, a store card and a car loan, keeping track of interest rates on each, and your monthly payments, may be proving a bit of struggle.
One option is to consolidate the debts by taking out a loan to pay off the individual debts, leaving only one payment each month.
This option can make sense, but you need to investigate it carefully. It only works if you find a loan with a good rate of interest, a good term, AND make yourself aware that you haven't cleared your debts, you've just consolidated them.
It's estimated that 80% of people that take out a consolidation loan end up with more debt. If you are opting for this route do not run up more debt on the same cards, or new loans.
