Consolidating car and student loans
There are several options for making that happen -- a debt consolidation loan, a personal loan, a balance transfer on a credit card, a home equity loan or borrowing money from friends or family.
That's an option if you're looking to consolidate your credit card debt. If you can't pay off most or all of your debt by the time the introductory rate expires, you'll be back to paying high interest rates again.
If you're struggling with high interest rates on credit cards and loans while barely making a dent in your debt each month, it may be time to consider debt consolidation.
That's a strategy where you roll multiple debts into one monthly payment at a lower interest rate to pay down your debt more quickly.
Then you make one monthly payment into an account held by the counseling agency, and the counselor pays your creditors.
A DMP is not a loan, and Bovee warns that there is "not a lot of wiggle room" in a credit counseling company's plan for you, which typically last up to five years. If you miss one, you could end up back where you started with high interest rates.