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Is debt consolidation a good idea?

Quick answer

Yes if you can lower the rate (e.g., 22% credit card to 12% personal loan), and you commit to not running up new credit card balances. Consolidation doesn't eliminate debt — it restructures it. Without behavior change, many people end up with consolidated debt PLUS new credit card balances.

More context

Yes if you can lower the rate (e.g., 22% credit card to 12% personal loan), and you commit to not running up new credit card balances. Consolidation doesn't eliminate debt — it restructures it. Without behavior change, many people end up with consolidated debt PLUS new credit card balances. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.

For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.

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