Debt consolidation allows you to group all of your debt under one umbrella. If you have high-interest debt like credit card debt, consolidation can also help you secure a lower interest rate. However, debt consolidation doesn’t always make sense.
A Redditor in the Dave Ramsey subreddit recently asked about consolidating $20,000 in credit card debt. The individual is looking at a home equity loan but is on the fence, hoping that interest rates go down.
“I’m in this weird limbo,” the Redditor explained.
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While the Redditor framed their question around waiting for rates to go down or tapping into home equity, commenters had other thoughts.
The debt snowball is a popular method that involves paying off small debt…
