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The Best Way To Consolidate Debt

March 15, 2014

In addition, there is no credit check for one of these loans, so it is very easy to qualify. While that sounds easy enough, there are plenty of drawbacks. If you cant pay back the loan as agreed you may pay taxes, and penalties, just as if you withdrew the money from your account instead of borrowing against it. And you may jeopardize your retirement savings. After all, your money isn't invested in the market where it may potentially earn higher returns. But the biggest trap involves consumers who use retirement funds to consolidate debt but wind up in bankruptcy anyway.
For the original version including any supplementary images or video, visit http://www.marketwatch.com/story/whats-the-best-way-to-consolidate-debt-2014-02-17

When should you consolidate debt?

Image: Worried man © Corbis Debt consolidation, at its most basic level, is simply the action of grouping all your bills into one combined debt. Say you have three student loans and decide to use debt consolidation to combine them into one consolidation loan. In that case, the new loan would have a balance equal to the sum of the other loans. Sounds pretty simple, right? Unfortunately, some companies advertise themselves as "debt consolidation providers" when in reality they actually provide debt management, which is different. More on debt management services Why do they call themselves something they're not?
For the original version including any supplementary images or video, visit http://money.msn.com/debt-management/when-should-you-consolidate-debt

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