Debt Consolidation Loan
Need a debt consolidation loan? Not sure? Maybe we can help you figure it out if something like a debt consolidation mortgage is for you.
A Debt Consolidation Loan--Saving You More
Unlike a basic debt consolidation program that gets you reductions in balance and interest rates, a debt consolidation loan is a loan given to you to pay off all your unsecured debt (like medical bills, non-government student loans, credit cards) at once. Then you just have a monthly loan payment. That's the first benefit - replacing several monthly bills with just one. (Of course, this is also the case with a basic debt consolidation program.)
Now, some of you may be thinking that a debt consolidation loan just replaces one set of debts with another. True, but think about the interest rates you're paying on some of those unsecured debts - and how low today's debt consolidation services can bargain down rates on your behalf. Credit cards alone charge anywhere from 18-24%! (Especially if they're department store credit cards.) And you know when you get your monthly credit card statement in the mail? That finance charge represents how much of your minimum payment will go towards interest. You'll notice that very little of it goes towards what you actually owe. But with a debt consolidation loan, the interest rate is so low (single digits, in fact) that most of your payment is applied to the principle. This means you can have your debt consolidation loan paid off in about five years, and thus be entirely free of your unsecured debt. And that, my friend, is the beauty of debt consolidation loans.
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