The objective of consolidating debt is to combine multiple unsecured debts into a single monthly payment. In the process, interest charges are reduced or eliminated so you can repay the principal amount faster.
Watch the video to learn more about Debt Consolidation and Balance Transfers, then test your knowledge at the end of the lesson.
Debt consolidation can help you with all of the following except:
A. Reducing or eliminating APR
B. Affording monthly payments
C. Getting pre-approved for a loan
D. Paying off debt within 60 payments
Which of the following types of debt can be included in debt consolidation?
A. Retail credit cards
B. Secured personal loans
C. Mortgages
D. Federal student loans
Balance transfers work best for people who have good credit scores and can handle large payments.
A. True
B. False