TRANSCRIPT
(Jessica) Welcome to Money Matters on the Southern Bank Financial Wellness Network. I'm Jessica.
(John) And I'm John!
(Jessica) And today we're talking about credit card debt. Hmm. That's a tricky one, John.
(John) It can be. Particularly if you have multiple credit cards with significant balances.
(Jessica) Is it a good idea to consolidate all the cards into one debt, one payment?
(John) Consolidation can be helpful if used wisely. If you have multiple debts with varying interest rates, bundling them together has two notable benefits. The first is that you will only have to make one monthly payment that is lower than the total you are currently paying. The second is that if you qualify for a lower interest rate, consolidation could reduce how much you pay in interest and fees.
(Jessica) What's the downside to consolidation?
(John) Consolidation could impact your credit score, and it might not be possible if the total debt is too large to consolidate.
(Jessica) Thanks, John. We'll see you next time on Money Matters. And remember, Financial Wellness starts here!