The first step is to take stock of all of the debt that you have, the total amount owed, the monthly payments, and especially the interest rate that is being charged on each. If you can reduce any of the loans or debt to zero, do it now since that will immediately improve your cash flow. Many experts suggest that you should repay the highest interest debt first and in most cases, you should. However, if cash flow is an issue, this is the next best thing to do.
Once you have this information, you will know how much you need to borrow to repay everything. Next, meet with a loan officer to determine if you are eligible for a consolidation loan. They will address the basic question of whether you are eligible or not. They can also tell you how much money in interest charges you will pay and how much you will save each month. If your interest rate is lower, your cash flow is going to improve making more money each month available to repay your loans.
If your credit is bad, you may have to search further to find someone who will help you consolidate your debt. Before you proceed always compare your total interest costs to your existing payments before you make your final decision.
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