By comparison, a longer term will stretch out the balance and lower your monthly payments but could raise the total interest you pay.
In other words, a consolidated loan could cost you hundreds of dollars more than you would have paid if you’d left the original debt alone.
A shorter term will have higher monthly payments but will help you avoid years of interest charges.
Although consolidating debt often makes sense, it isn’t always the best move. Debt consolidation services promise to help you consolidate your debt.
However, they can be costly, and if you’re not careful, you could end up getting scammed. There is nothing a debt consolidation service offers that you couldn’t easily do yourself for less or for free.
When debt is straining your budget, a little wiggle room can make a big difference.
On the other hand, some borrowers might actually pay more each month with a debt consolidation loan.