By Dr. Drew Henry
Under a debt consolidation plan, terms and conditions change,
it will allow you to pay your current debts in 3-6 years. The
purpose of debt consolidation is to speed up your paying time
and at the same time makes lower monthly bills.
You have to make sure that the new cost of the consolidated
loan is truly less than what you are currently paying for to
the various creditors. Not getting the lowest available
interest rate has always been a problem faced by consolidation
loan applicants. Be sure that there is something to secure the
loan like your house for example.
It is highly recommend you to calculate the interest and the
fees of all your existing accounts to see the total payments
you’re making at present. After computing this, compare the
figure with the consolidation loan amount. This will determine
if you’re making a better choice or not.
Be sure to make your deposits on time, if you are already
a consolidation loan. This will assure your creditors that you
really intend to pay for your debts. Having delayed payments
might cause the creditors to resume the normal collection
activities and what’s worse, they might turn it back to the
regular interest rates and fees.
Be sure to keep in touch with your consolidation
representative. There may be instances that your account will
be turned over to a collection agency. Keeping your agent
updated on the changes will help you solve your problems.
Pay your credit to your consolidation company. They are the
ones that divide how much goes to each creditor.
Always check on your creditor’s statements. It is your duty to
monitor the monthly statements sent to you by your creditors.
Check if your creditor has reduced the rates. They should also
have the late fees stopped. Also check if your debt
consolidation company is paying your creditor the right
There are many types of debt consolidation loans available.
There could be a loan that would take you a longer time paying
but has a higher interest rate. There are also loans that
short payment duration and a lower rate of interest. If you
could not pay for a larger amount every month, you could
consolidation loans that offer a longer plan.
There is the variable rate debt consolidation loan that allows
you to make extra repayments anytime with no extra cost.
However a fixed rate debt consolidation loan will only accept
fixed repayments for the duration of the loan.
About The Author: Dr. Drew Henry maintains a number of
about banking, including www.lendernow.info ,
www.lendingtreesecrets.info , and
www.mortgagelendersecret.info . Please visit his
websites for more detail.