Consolidating federal student loans good idea


24-Oct-2017 16:41

consolidating federal student loans good idea-24

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Though this woman may be an extreme example, most of us do tend to have a variety of credit lines at any given time — usually a combination of installment loans (mortgages, student loans, auto loans, etc.) and credit cards.In many cases, having multiple credit accounts in good standing can improve your score — but, when you fall behind on one type of debt, it can strain your ability to keep up with the rest.In an ideal consolidation world, Pete would be able to pay off all four of his loans with a single, larger loan that averages out to a lower interest rate than his current debts carry.Not only would he be able to simplify his payments, but he’d lower them, as well.Our friend Pete has a total of ,000 of debt, spread across four accounts, like so: Not only does each of Pete’s debts have a different lender, but they all have different interest rates — some of them quite high.So, Pete is currently paying four different people, at four different times, with four different interest rates.For shorter or longer loans, it is best to look elsewhere.

Her straining pocketbook held the financial equivalent of a Baskin Robbins — it looked like she had an entire 31-flavor buffet of credit cards.For some, a good way to get a handle on their debt is to get it all in one place through a debt consolidation loan.