Is consolodating my student loan smart

If you are struggling with student loan debt repayment options, ACCC can help sort out the confusion.Visit Consumer to learn more student loan repayment options.If you take a loan with a three-year term, you know it will be paid off in three years — assuming you make your payments on time and manage your spending.Conversely, making minimum payments on credit cards could mean months or years before they’re paid off, all while accruing more interest than the initial principal.Here’s a scenario when consolidation makes sense: Say you have four credit cards with interest rates ranging from 18.99% to 24.99%.

Student loan consolidation takes all your loans and creates one new loan.There are a few advantages and disadvantages to consider before consolidating your student loans.Here are the pros of consolidation: Most Federal student loans, which are backed by the government, can be consolidated into a Direct Consolidation loan.Your original loans are actually paid off and a new loan is created with new terms.Borrowers needing a lower monthly payment or facing several loans from multiple loan servicers may consider consolidation to simplify repayment.

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