Myth: Debt consolidation saves interest, and there’s one smaller payment.
The goal is then to pay down as much as possible before the period ends and the rate jumps to a much higher level.
It’s typically considered for people who have high consumer debt.
But most of the time, after someone consolidates their debt, the debt grows back. They still don’t have a game plan to pay cash and spend less.
Consolidated credit companies are another name for credit counseling agencies.
They advise consumers on budgeting and discuss options available for eliminating debt.