Consolidating to one
If you want to pay off debt fast, the best way is a two-pronged approach: Debt consolidation means taking out one new loan large enough to repay some or all of your outstanding debt.
Bad credit debt consolidation loans are available from some lenders but they are costly.
Debt consolidation makes sense for people who want to make one payment each month instead of several, and for those who can lower the amount of interest they pay by taking the new loan.
You can figure out how long it will take to pay off your debt using a debt payoff calculator like this one from CNN Money.
They may simplify your payment without significantly lowering your cost of debt.
A great way to consolidate debt, especially if you have bad credit, is to enroll in a debt management program, which we’ll discuss in a moment.