Debt Consolidation

Consolidation Means A Single, Fixed Monthly Payment But Doesn’t Reduce Principal Balances

• Pay off high interest credit cards
• One low fixed monthly payment
• Interest rates as low as 5.49%
• Next-day funding available
• No collateral required, no prepayment penalty

Debt Consolidation in Detail

Debt Consolidation is just what the name sounds like. It is the process of combining all of your outstanding credit card debts into one or “consolidating” your debts into one single debt. It's a loan. But the goal is that the new loan amount will have a lower interest payment than your current APR for your credit cards do. You will get all the information like you would a car loan or a home loan: the pay-off amount, the monthly payment, and the APR rate. Again, this will not reduce the balance you owe, just the interest rate.

It's also more convenient because you are making one single payment a month and not sending payments to multiple credit card companies. Your APR will depend on your current FICO score. It's wise to compare rates and lenders. Some of the larger banks will not offer debt consolidation loans. You need to calculate the long-term costs. Your initial monthly payments should go down; however, it's wise to understand the total cost for borrowing. If you end up making more payments for a longer term, then your actual savings could be negligible. The loan amounts can range from $2,000 to $35,000 depending on the lender. There will also be administration fees with APR rates ranging from 9.95% for good credit scores to 35.99% for not-so-good credit scores.