Consolidating credit agencies
If your new monthly obligation is substantially lower, it usually means a longer repayment term.
If your repayment term is extended when you consolidate, it may take you significantly longer to pay off your credit card debt.
While it may be nice to have a more manageable monthly payment, it also means paying more interest over the life of the loan.
Review the terms of your consolidation carefully before deciding that it is the right choice for you.
The amount of your monthly payment will depend on the total amount, interest rate, and payment terms of your consolidation loan.
There are thousands of companies that claim they can help you consolidate or manage your credit card debt so that you pay less or reduce your payment.
Each month, you make a single payment to the debt consolidation firm and it distributes a portion of your payment to each of your creditors.
Even if the consolidation reduces your monthly payment, you still have to pay off all of your debt.