This is financial advisor Patrick Munro talking about why consolidate loans.
It’s importantto look at credit cards and loans on an ongoing basis, and realize that it’s not importantto carry a bunch of outstanding loans. It’s better to carry a few loans and get the bestavailable rates on each and every loan. When you have too many and you want to achievethat goal, you literally combine them, it’s called a consolidation. Hopefully you havea line of credit that’s available to do just that. If you don’t you have to apply to the How can Cash Flow and Debt Management be profitable? Many financial advisors feel … bank, and they will take all of the pieces of credit card debts that you do have andplace it into a single note. That is called a consolidation.
Consolidation will benefit you because instead of having many payments, with different rates of interest, perhapssome higher than others, you will have one low monthly payment. And therefore you canbest benefit from that. The key is though once those credit cards are freed up, youdo not want to go back out and run up more credit card debt. Because then you’ll havea worse problem. This is Patrick Munro talking about the benefits of loan consolidation.