| A debt consolidation loan is a loan that is normally | | | | real estate agent to recommend one. You might |
| secured on your property. Such a loan will typically | | | | even prefer to check online for a lender with an |
| enable you to pay off all your debts, leaving you with | | | | honest reputation. |
| only one loan to repay. This not only saves you | | | | Your Best Available Option |
| money but can also benefit your credit rating. | | | | There are many different loan types, rates, payment |
| With that said, a consolidation loan must still be | | | | lengths, loan amounts, etc. With all those options, it is |
| viewed as a serious step and close-to-last resort | | | | still up to you to select a loan type that will be the |
| rather than a casual means of attacking a non-urgent | | | | best overall fit for your financial circumstances. Once |
| financial situation. | | | | you determine the equity in your home and your |
| The following are a few means of consolidating your | | | | means of repayment, use this valuable knowledge to |
| debts. | | | | help you make the best decision. |
| Combine Them Together | | | | As a side note, be aware that interest paid on loans |
| By doing this you will know exactly how much you | | | | and credit cards is not tax deductible. |
| owe in total. This will also make paying them back | | | | Apply, but Read the Small Print |
| easier since you know how much you need to | | | | Make sure you have filled the correct application |
| borrow. Taking this step will also make your debts | | | | forms and provided the required information to the |
| easier to control since it will reduce your monthly | | | | lender you select. |
| payments to one. | | | | You will need to provide all the information available |
| Alternative Interest Rates | | | | from your credit card payments in order for those |
| Every credit card has a different interest rate, and | | | | debts to be properly paid off and have them put to |
| these can vary wildly from under 10% to well over | | | | rest. Unfortunately, this process could take 3-4 |
| 20%. It is a good - no, a great - idea to compare | | | | weeks, so be patient. |
| cards and loan rates; you could save yourself a lot of | | | | By using debt consolidation you will be able to |
| money in the long run. | | | | significantly reduce the total and monthly amounts |
| Visit a Lender | | | | you owe. However you must be diligent keep up |
| Seek the advice of a lender and see if they can help | | | | your repayments or you could stumble into a worse |
| you. There should be no shortage of lenders in your | | | | position than when you took out your loan. |
| local phone directory; or alternatively, you can ask a | | | | |