Example of Debt Consolidation
Credit Card Balance Transfer is one of the common debt consolidation methods. This method is being used to consolidate all your credit card balances from different cards into one single card. This would enable the holder to better manage their repayments to multiple banks. It is always easier to manage one single account and making sure it is being paid on time, rather than managing multiple credit cards.
Personal Loans method can also be used to consolidate all your debts. Most people use this method to consolidate higher interest debts such as credit cards, into lower interest debts. There are also people who use a personal loan to receive additional cash on top of consolidating their debts. The benefit of this is that it has a fixed payment over a period of time; giving you a time allowance to pay off your debts.