Start Consolidating loans while in school

Consolidating loans while in school

If you need help getting out of debt, you are not alone.

The best way to consolidate a large amount of credit card debt (anything over $3,000) without taking on a new loan, is to enroll in a Debt Management Plan.

Most financial experts agree that a Debt Management Plan (DMP) is the preferred method of debt consolidation.

This can allow you to set aside a portion of your income each month to pay down balances for each card, one at a time.

Other options include borrowing against a whole life insurance policy and borrowing against you retirement savings.

If you have a very good credit score (700 or above), the best way to consolidate credit card debt is to apply for a 0% interest balance transfer credit card.

The 0% interest is an introductory rate that usually lasts for 6–18 months.

With bill consolidation, you make only one monthly payment — a good idea for when you have five, or maybe even 10 separate payments for credit cards, utilities, phone service, etc.