Debt consolidation loans are a popular choice for relief from credit card problems, but be forewarned that lenders aren’t always willing to accommodate people in need.
A debt consolidation loan combines all your credit card debt into a single bill, and pays it off at a reduced interest rate and lower monthly payment.
More than half the people with high credit card debt (above $6,000), apply for a debt consolidation loan to solve the problem, but the results aren’t all that favorable.
In 2017, 53 million people applied for a loan to consolidate credit card debt and only 20 million got one big enough to eliminate their debt. Another 12 million were offered less of a loan than they applied for and 21 million applicants were rejected completely.
If you were among those denied a loan, don’t give up. There are other solutions to the problem. Learn what your next steps should be and explore alternatives for easing the financial burden of credit card debt.