What is a Debt Consolidation loan?

A Debt Consolidation loan is a personal loan that allows you to consolidate several debts into one lower monthly payment (usually debts with higher interest rates). Debt Consolidation reduces the risk of late payments because you are only making one monthly payment, rather than trying to keep track of several debts from different lenders with different due dates. A debt consolidation loan can help you eliminate your credit card debt.

What are the advantages of debt consolidation?

• Lower interest rates
• Lower Your Monthly Payments
• Alternative to filing bankruptcy
• Eliminate Late Fees
• Stop Harassing Phone Calls

Do you qualify for a debt consolidation loan? Are you barely making the minimum payment on your credit card loans? Regardless of your past credit history (including bankruptcy, repossession, slow payments and collections), you can still qualify for a debt consolidation loan.

• Is your monthly minimum credit card payments higher than 15-20% of your take home or net pay. - Your debt-to-income, (not including rent or mortgage payments), should generally be 30% or less of your net income.
• Do you have more than one or several past due accounts? This is usually an indication that it is time to find ways  to get out of debt and that it is time to start taking steps to reduce expenses.
• Have you maxed out your credit limits? - Maxing out your credit limits can make it difficult to reduce your expenses by refinancing your mortgage or buying a less expensive car.