Debt consolidating personal finance


08-Jul-2020 08:39

Although each lender will probably require different documentation depending on your credit history, the most commonly required pieces of information include a letter of employment, two months' worth of statements for each credit card or loan you wish to pay off, and letters from creditors or repayment agencies.If you have a good payment history with a bank, credit union or credit card company, asking that institution about a debt consolidation loan should be your first step.One method is to consolidate all their credit card payments into one, new credit card—which can be a good idea if the card charges little or no interest for a period.They may also utilize an existing credit card's balance transfer feature (especially if it offers a special promotion on the transaction).Creditors are willing to do this for several reasons, including that it maximizes the likelihood of collecting from a debtor.

"But your bank may not be looking to keep you as a client and your credit scores may not be high enough to meet their lending requirements.” If not, you should start by paying off your highest-interest debt first.

This amounts to a total savings of ,371.51 (,750 for payments and ,621.51 in interest).