Loan consolidation is a great way to get out of debt faster, because everything is together in one lump payment and sometimes some of the debt can be forgiven. Pay off debt faster by consolidating loans and credit cards into one payment with tips from an experienced financial adviser in this free video.
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Video transcription
This is financial advisor Patrick Munro talking about why consolidate loans. It's important to look at credit cards and loans on an ongoing basis, and realize that it's not important to carry a bunch of outstanding loans. It's better to carry a few loans and get the best available rates on each and every loan. When you have too many and you want to achieve that goal, you literally combine them, it's called a consolidation. Hopefully you have a line of credit that's available to do just that. If you don't you have to apply to the bank, and they will take all of the pieces of credit card debts that you do have and place it into a single note. That is called a consolidation. Consolidation will benefit you because instead of having many payments, with different rates of interest, perhaps some higher than others, you will have one low monthly payment. And therefore you can best benefit from that. The key is though once those credit cards are freed up, you do not want to go back out and run up more credit card debt. Because then you'll have a worse problem. This is Patrick Munro talking about the benefits of loan consolidation.