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Consider Debt Consolidation

See if debt consolidation is right for you with three easy steps

Consider debt consolidation video

Should you consider debt consolidation?

Debt consolidation may be a good option if you’re trying to pay off high-interest loans and credit cards and managing multiple monthly payments.
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How you may benefit from debt consolidation

Paying off multiple debts with a new loan and a single payment monthly may help you:

  • Lower your overall monthly expenses and increase your cash flow
  • Reduce stress with fewer bills to juggle
  • Reach savings goals more quickly with any extra cash you save

Consolidate debt one step at a time

1. Take inventory of your debt

  • Make a list of each loan and credit card balance, including the interest rate and monthly payment amount
  • Calculate the totals for both outstanding balances and monthly payments
  • Check your credit score to see where you stand

2. Explore your debt consolidation options

When finding the right loan, consider your options. Wells Fargo offers a personal loan option for debt consolidation. With this type of unsecured loan, your annual percentage rate (APR) will be based on the specific characteristics of your credit application including, but not limited to, evaluation of your credit history, amount of credit requested and income verification. While secured loans may offer a slightly lower interest rate, keep in mind you are at risk of losing your collateral if you fail to repay the loan as agreed.

3. Know before you borrow

If you decide debt consolidation is right for you, keep the following in mind:

  • Debt consolidation isn’t debt elimination. You’re restructuring your debt, not eliminating it.
  • Consider the total cost of borrowing. A loan with a longer term may have a lower monthly payment, but it can also significantly increase how much you pay over the life of the loan.
  • Avoid future debt. Use good credit habits and create a budget to help control future spending.
  • If a consolidation loan is not right for you, compare the Snowball vs Avalanche methods of paying down debt.

  Need help?  

If you’re facing financial challenges, don't wait – lenders want to work with you. Visit Wells Fargo Assist page or the National Foundation for Credit Counseling for help.