These are not quick fixes, but rather long-term financial strategies to help you get out of debt.When done correctly, debt consolidation can: There are several ways to consolidate debt, depending on how much you owe.This helps eliminate mistakes that result in penalties like incorrect amount or late payments.
A personal loan may be an enticing option if you have a lot of credit card debt, as it could allow you to pay off your high-interest credit card debt and then pay off the personal loan at a lower rate.
These cases are the most extreme and you might not have much of a choice.
For many of us, there are still a handful of options to think through.
How It Works: Both are terms we hear a lot about in the personal finance community.
Simply put, the debt snowball method works by paying your lowest balance credit card first and work your way up.