There is no one-size-fits-all approach to consolidating debt.
If you are struggling with minimum payments, then protecting your credit is not realistic. However, that solution is only going to work if you have strong enough credit to qualify for low interest rates.
The chart below, taken from the NY Federal Reserve’s Regional Household Credit Snapshot shows the percent of consumers that have five different types of loans, as well as the average balance for those who do have loans.
Remember, this does not include other bills and debt, such as medical debt.
This debt consolidation tactic will help you protect your credit, improve your cash flow, and reduce your debt stress.
However, since you lengthen the time of your loan, you will not get out of debt so quickly, now will this be at the lowest cost.
While this tactic doesn’t really consolidate your debt, or bills, it is an effective way of paying off your debt in a fast and orderly manner.