The Rules of Wealth, 3rd Edition

RULE 42

Consider consolidating debts

Obviously the best advice is don’t get into debt in the first place. If it’s a bit late for that nugget of wisdom then you need to pay as little interest as you can while you are paying off your debts (which clearly you will be doing as quickly as possible). Consolidating debts is one way of doing this that might be right for you. What I am talking about here is stopping using three or four credit cards plus an overdraft plus a bank loan plus other borrowings. It is possible to consolidate all of them into one loan, tear up the cards (as if – you need industrial strength scissors, and here speaks a man who has cut up many a credit card) and pay off the overdraft. And yes I do understand the ease and usefulness ...