This can save you money on interest, help you get out of debt faster, and simplify your monthly payments. Try a credit card consolidation calculator to see how much you can save.

There are several different ways to consolidate debt, and the best option for you will depend on your financial situation. For example, if you have equity in your home, you might be able to take out a home equity loan or line of credit and use the funds to pay off other debts. Or, you might be able to transfer your outstanding balances to a low-interest credit card. If you have good credit, you may be able to qualify for a personal loan with a competitive interest rate. There are also specialized debt consolidation loans available for people with bad credit. Whatever route you choose, make sure you do your homework and compare offers before taking out any new loans.

Debt consolidation can boost your score

Debt consolidation can actually help improve your credit score, according to a new study from LendingTree. The study found that debt consolidation can lead to a significant increase in credit scores, with the average person that consolidates $5,000 or more in credit card debt seeing a 38-point bump in as little as a month.

The benefits do not stop there – the more you pay off using a personal loan, the higher your score can go. Paying down $10,000 or more in credit card debt increased scores by around 49 points. If you do not have that much credit card debt, you can still see increases. Paying off anywhere from $1,000 to $5,000 in credit card debt sees on average a 17-point increase in just one billing cycle.

Debt consolidation is often seen as a way to make the debt more manageable. But the new study shows that it can also have a positive impact on your credit score. It can also save you money. Personal loan rates are typically lower than the APR on credit cards, so those with good or excellent credit can save substantial amounts when paying towards a personal loan rather than paying off a credit card directly.

The findings suggest that debt consolidation can be a helpful tool for anyone looking to improve their credit score. If you're struggling with debt, consolidating your loans could be a good way to get your score back on track.