Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Make the most of a debt consolidation loan
Consolidating all of your debt into one convenient monthly payment may seem like an organized and less-costly debt management solution, but first consider the risks. Using a debt consolidation loan may relieve some of your financial anguish if you’re in the right financial position, but it could leave you worse off if you’re not.
Budget for the loan payment
Before agreeing to combine your debts into one monthly sum, make sure you can actually afford it. Many jump into a consolidation loan thinking it’s cheaper, but if the loan has a high interest rate, it may be more costly. Also, if you take on a home equity loan and default, the result is foreclosure.
Compare the cost
When considering consolidation, make sure to calculate and compare the cost of the loan with the cost of just combining credit card payments. Depending on the loan, it could cost you more to consolidate than to simply pay off the credit cards individually. Use Bankrate.com’s debt consolidation calculator to analyze which option is better for you.
Get pre-qualified
Answer a few questions to see which personal loans you pre-qualify for. The process is quick and easy, and it will not impact your credit score.
Maintain discipline
After your cards are paid off with your debt consolidation loan, don’t use them again. One common mistake among consumers is falling into the same old spending habits once the debt is paid off. The availability of your credit cards can be very enticing. Better to freeze them in a block of ice, lock them away or, if necessary, cancel and cut them up; just don’t give in to more debt.
Share