Thinking About Debt Consolidation? Read These 8 Facts

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00:00Thinking about debt consolidation? Read these eight facts.

00:05Consolidation isn't just about loans.

00:08Balance transfer cards, not just personal loans, offer 0% interest up to 21 months,

00:15with fees and clear payoff plans required.

00:18Balance transfer cards can help you save.

00:21Good credit borrowers can use balance transfer cards for 0% APR periods to save on interest,

00:27but must avoid new purchases.

00:31Debt consolidation programs offer flexibility.

00:35Debt consolidation programs provide monthly payments and lower interest for imperfect credit borrowers,

00:41though fees and credentials require careful review.

00:45Big savings are still possible in 2025.

00:48Consolidating high-interest credit card debt into lower-rate personal or home equity loans

00:53can save thousands, though collateral risk applies.

00:57You can't consolidate every type of debt.

01:01Most consolidation methods exclude secured debts like mortgages or auto loans and have limits,

01:07so review eligibility before applying.

01:10Debt habits still matter.

01:12Consolidation simplifies payments, but it doesn't curb overspending,

01:16so lasting stability requires budgeting, avoiding new debt, and building savings.

01:21Lenders look at your DTI and credit score.

01:25Lenders assess credit scores and debt-to-income ratios when approving consolidation,

01:30so lower DTI below 35% and improve your score first.

01:36Make the most of your consolidation plan.

01:39Consolidation requires comparing options, understanding terms,

01:43and committing to smart habits to simplify payments, save interest, and rebuild finances.