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If you’re answering “yes” to all these questions, then you’re probably in the right category to redo your finances with a credit consolidation loan. In fact, just knowing more than a quarter of your net income per month is going to debt is a sign you’re in trouble. Very few people do well with ¼ of their cash flow being committed to debt versus living expenses. And it’s the number one way people get deeper and deeper into debt once they start playing catch-up each month.
As described above, a credit consolidation loan is basically a refinancing of your existing loans into one loan. The interest charge could change, and the time period almost always changes to a longer time window. The longer the time, the smaller the monthly payment due. So loan consolidation that stretches out the loan time tends to be very appealing to applicants when offered. This is despite the fact that a longer loan will always cost more in the end for the total amount paid.

An added benefit is that by creating a longer schedule of regularly, successful payments, you will increase your credit score over time. This is due to the fact that a FICO calculation, the method for scoring is influenced by how well you manage your debt. Of course, this statement assumes you don’t go out and get more debt which throws off your score instead.