Debt Consolidation Loan
Most individuals have more then one debt. These debts can be credit cards, medical bills, department store cards, legal bills, or cell phones bills etc. To end these debts you have to borrow money yet again, creating another debt with usually high interest.
If you own a home or have something to offer as collateral, the solution to this problem is a debt consolidation loan which usually entails refinancing or taking a home equity loan which offers a lower interest rate then your existing non-secured debts. In other words, a debt consolidation loan, is when you roll all your debt into one loan that usually has a much lower interest rate so you can end your debt much faster. Here is a link to see if you qualify and for companies to compete for your business.
What Are The Benefits? What Are Some Disadvantages?
There are many benefits to a debt consolidation loan. First, you can end those debts that carry high interest (credit card debts). Usually your debt consolidation loan has a much lower interest rates then any unsecured debts you have (medical debt, credit card debt, tax debt). Second, you can consolidate your debt into an affordable one low monthly payment. Third, you can improve your credit score and prevent the degradation of your credit score. On the downside, debt consolidation loans are not always easy to get, extend your debt over a longer period of time, and save you the smallest amount of money.
If you would like to try to pursue a debt consolidation loan and have lenders compete for your business start here.