Money troubles are perhaps the most relatable problems people have. Just about everyone experiences financial challenges at some point. When those problems emerge, many try to overcome them by taking on debt.

Per this report from CNBC, Americans now owe an astonishing $1.14 trillion in credit card debt. You may be contributing a meager amount next to that massive number, but it may still be difficult for you to deal with. While coming up with ways to manage your debt better, don’t forget that consolidation is always an option.

To be more specific, you can make your current debts more manageable by taking out a debt consolidation loan. While applying for a new loan when you are already in debt may seem like a bad idea, there are merits to that move. Discover if debt consolidation makes sense for you by continuing with the rest of this article.

What Are the Benefits of Debt Consolidation?

More and more companies like Symple Lending are offering debt consolidation loans. After learning more about the benefits debt consolidation loans provide, it’s easy to understand why they have become so popular.

Chief among the benefits of consolidating your debt is simplifying your patients. Tracking your various due dates can be difficult if you owe money to different lenders. You can easily overlook a payment you must make on the 18th because you have a larger amount to cover a day before.

Unfortunately, missing that one payment can lead to significant penalties. Even your credit score may be affected by that lapse in your memory.

Debt consolidation loans allow you to gather all your debts and combine them into one payment. From the standpoint of convenience, debt consolidation is highly appealing.

You can also get a good interest rate on your debt consolidation. By timing your loan application correctly, you can snag a great deal that makes your payments easier to cover.

Applying for a debt consolidation may also be a good idea if your salary isn’t fixed. Now that you only have one payment to complete, you will have more time to save money if necessary.

What Are the Factors to Consider Before Consolidating Your Debt?

After learning about the benefits of debt consolidation, you may already have your heart set on taking out a loan from Symple Lending. Before you proceed with that application, it’s important to remember that the quality of your loan can be affected by certain factors.

The biggest factor that can affect your debt consolidation loan is your credit score. You need a good credit score to land a loan contract with decent terms. According to Experian, credit scores above 670 are often regarded as good. Make sure you hit that mark before you apply for your loan.

You should also consider the terms of your existing debts before you try debt consolidation. Check if you may incur penalties by using a debt consolidation loan to pay them. If they do, you should evaluate how onerous those penalties may be.

Debt consolidation can be a good consolidation for many consumers. Find out if it also works for you by consulting experts.