Advertiser Disclosure
X

Advertiser Disclosure: We may have financial relationships with companies listed on our site. We may receive compensation for placement of sponsored products or services and this may affect our decision about who to promote and where to promote them. We make every effort to be authentic and accurate with every article we write.

10 Tips to Better Debt Consolidation

3. Ignore New Purchasing Power

While working hard to consolidate (and ultimately pay off) debt, it can also be tempting to start spending again. Once balances and monthly payments are combined, more money is generally available in the budget. Rather than simply combining debt for the purpose of making payments more manageable and freeing up cash, it’s important to use any leftover funds to make extra payments, pay down on principal, or pay off another account.

Putting more money in the bank may give you peace of mind, but it doesn’t make much sense if the interest you earn is lower than the rate you’re already paying for debt.




This post may contain affiliate links. This means that I may receive a small commission (at no cost to you) if you subscribe or purchase something through the links provided. Not all items recommended on this site are affiliate links. You will never see me post a link to a product or service that I don’t use myself!