Dealing with debt can be a frustrating, emotionally taxing experience. Whether you carry high credit card balances, persistent medical debt, or a crippling mortgage, your financial obligations can interfere with your ability to live a balanced life. If you feel like you just can’t pay off your debts on your own, you may be considering an option that has provided relief for hundreds of thousands of other Americans: a debt consolidation loan, also known as a refinancing loan.
These loans can be a big help to borrowers who owe significant money – but they do come with risks. It’s important to understand the drawbacks and consider all your alternatives before deciding if a debt consolidation loan is right for you.