Low interest debt consolidation loans are sought out to handle everything from credit card debt to student loan debt. However, there are options available to those who may have one or both of these kinds of debt and they don’t require a debt consolidation.
While there are some people who may benefit from a low interest bad credit debt consolidation or a low interest student loan consolidation, in many cases, these forms of debt can be handled without consolidating.
Debt consolidation may work for someone with a large amount of debt and a low amount of income with which they can combat that debt, or a student who wishes to take advantage of income-based repayment options and wants to consolidate to do so, it may not be for everyone.
Consolidating debt is going to bring a larger amount of money to a loan that is going to charge interest on that debt, which can cost more over the long run. If someone’s credit card or student loan debt is only from one or two sources it may be best to keep them apart and pay them off separately.
Many financial advisors believe in paying minimum payments on all debt, except the smallest valued debt source, and throwing as much money as you can at that debt until it is gone. The process would then be repeated on the next smallest amount of debt and so on.
While debt consolidation may seem like the easiest route, it may not be the best because it can be costlier and keep one in debt longer than they need to be. However, talking with a financial advisor or simply sitting down, doing the math, and figuring out how much each options would cost you personally will show you the best route to take.