What Debts Can Be Consolidated?Technically you could consolidate any type of debts you have. If you can get a loan that's big enough to cover them, just pay them off, start paying on the new loan, and you've consolidated. That said, just because you can do something doesn't mean you should, so here's a few things you may want to consider including in your consolidation plan. Credit Cards: You should note however, that you need to be very careful not to wipe away your credit card balances only to max out your cards again over time once paid off. This is a recipe for disaster, as you'll be back to paying that high interest every month and now paying an additional loan off as well. Once they're paid off, consider closing any credit accounts you have but don't need. A single credit card can be helpful for emergencies and other things like online ordering, but be careful not to slip into old habits, and don't charge more than you can afford to pay off in full when the bill arrives. Medical and Legal Bills: Old Service Bills: Tax Debts: Of course, that's really just the tip of the iceberg - any time you're carrying high interest debt you've got a possible candidate for something to consolidate. Some more examples might include department store credit cards, collection agency debts or even those old student loans. You'll notice that most high interest debt is unsecured, so think about other debts you have that aren't held with collateral and you might find some more examples of your own. |
