Streamlining debts can be a useful way of managing an unyielding financial burden and lowering costs, but it's not for everyone.
Here are a few things to consider before jumping into it.
If you have a variable rate loan, another reason to consolidate might be to nail down a fixed interest rate.
With a fixed rate, you know what your interest costs will be, regardless of the movement of the market interest rate that determines whether variable rates rise or fall.
It can be tempting to go on using your newly paid-down cards after consolidating.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.But doing so will only dig you deeper into the hole.Leave the cards open to help your credit score, but resist the urge to use them. Use a debt payoff calculator or talk to a certified credit counselor to figure out the right approach for you.© Copyright 2016 Nerd Wallet, Inc.