Ask the Dolans: Is debt consolidation a smart choice?
Sep 26th 2008 10:00AM
Updated Oct 12th 2009 12:15PM
Ken and Daria Dolan, America's First Family of Personal Finance, answer your money questions every Friday.
Here's the truth: Americans are drowning in debt. Consumers currently owe nearly $700 billion on all credit cards and carry, on average, more than $8,000 in credit card debt from month to month.
Now, here's the good news: This doesn't have to be you. If you're having trouble making payments, consolidating your debt may be the answer. Let's take a look at what exactly this means and how it could help erase your balances once and for all.
Dear Ken and Daria,
I have a high amount of debt and have been thinking about debt consolidation. Can you explain how this works, and how it affects my FICO score?