As a loan officer and debt consultant, Todd Jarrett Everwise Group has developed partnerships with over 100 financial institutes to modify clients’ loans and help them keep their homes when facing possible foreclosure. As an expert in debt consolidation and debt management, Todd Jarrett has witnessed firsthand the benefit of combining multiple debts into a single, larger loan, often with more favorable payoff terms.

Consolidating your debt is one way to save money in the long run, but there are times when this debt management strategy is best. The goal is to manage debt before it becomes out of hand and hurts your credit score and ability to finance other projects.

3 Situations To Consider Debt Consolidation

To lower high-interest rates

High-interest rate debt can make paying over the minimum balance each month more challenging, meaning the principal is barely being lowered. If you have many high-interest-rate credit cards and personal loans, Todd Jarrett suggests debt consolidation to congregate these loans into a financial vehicle with a lower interest rate.

Many people often find it easier to pay one larger debt than many smaller debts – which can help you save thousands of dollars in the long run.

To protect a good credit rating

A part of debt management is maintaining a credit score that allows you to qualify for lower-interest loans. Todd Jarrett Everwise Group specializes in debt management strategies to help clients acquire or maintain better credit bureau reports. And, when you decide to consolidate your debt, doing so with a better credit score means you qualify for better interest rates.

Protecting your credit rating should be part of everyone’s financial management plan, and it means paying off all loans on time and even paying off high-interest loans entirely – as early as possible.

To simplify your financial life

And finally, there is the client with an excellent credit score but numerous monthly payments to different debtors. This financial scenario can be hard to keep straight each month, especially when each creditor has a different payment due date. You can improve your financial life by consolidating many smaller loans and credit cards into one payment.

There are many ways to consolidate debt. Using a personal loan, home equity loan, or balance-transfer credit cards are just some of your options. A debt management and consolidation professional can help simplify the entire process and ensure your chosen strategy is right for you and your family.