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Is consolidating your student loans a good idea

But, before applying, be sure to ask about the lender’s credit requirements.Keep in mind that you’ll need Be sure to check out any potential online lenders with the Better Business Bureau before applying for a debt consolidation loan online.For it to truly help you get out of debt, you have to stick to the plan, whether that’s paying off your credit card balance within a 12-month promotional financing period or making sure you make payments as agreed for the entire five-year loan term.Throughout the process, you can keep tabs on how your credit card consolidation plan is affecting your credit by reviewing your free annual credit reports and viewing your Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser.Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser.It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

The following five tips can help you figure out which credit card consolidation strategy suits you best.A lender may lower the interest rate on your credit card balance when you participate in a debt management plan.Debt management plans typically last three to five years.Then you’ll only have one monthly payment: the loan, the credit card or the debt management plan.Not only does that simplify your debt payments, it can also help you save money.You can get your free annual credit report from each of the three major credit reporting agencies — Trans Union, Equifax and Experian.And, Credit.com’s free credit report summary can help you understand what’s inside your credit report. There are several safe and smart ways to consolidate credit card debt, so you’ll want to research them before deciding what’s best for you.Keep in mind a debt management plan may have a negative impact on your credit during the course of the program because your creditors will close or suspend your accounts while in the program, and this can affect your credit utilization.So make sure you are ready to live credit card free for a while.And if you make your credit card or loan payments as agreed, you’ll establish a positive payment history, which affects your credit scores more than anything else.(Payment history accounts for 35% of traditional credit scoring models.)Transferring credit card balances, paying off credit cards with a personal loan or enrolling in a debt management plan is only the beginning of credit card debt consolidation.

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