What is Debt Consolidation All About?

Last Revised on December 28, 2009

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Debt consolidation is way to get rid of too many loans. You take out one loan to pay off many other loans. Some people who haven’t done that wonder why people consolidate their debt after all. People do it because it helps them secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan.

Debt consolidation is often advised by financial experts because credit cards can carry a much larger interest rate than even an unsecured loan from a bank. Debtors with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Then the total interest and the total cash flow paid towards the debt is lower allowing the debt to be paid off sooner, incurring less interest.

For these reasons the credit debt consolidation is there. One website that provide such service is No Debt Today – a debt free service. They specialize in helping people solve their outstanding debts. Their program takes all of the current debts of the person and rolls them into one easy to manage loan package. And it also changes into an affordable monthly payment. That way you are able to consistently able to paying down the debts each month on time and not accrue anymore interest on it.

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One Response to “What is Debt Consolidation All About?”

  1. Leonardo Says:
    December 17th, 2015 at 9:42 pm

    When it comes to student loan coosilodatinn programs, there is only one coosilodatinn program. The Federal Student Loan Consolidation Program offers a fixed interest rate on your loans with multiple payment options to help meet your budget.When you are choosing between student loan coosilodatinn companies, the differences come down to customer service. All offer effectively the same borrower benefits including:.25% auto debit option, standard with all loans.1% rate discount for ontime payments (standard with all loans)1-2% cash back, (instead of a rate discount that will cost you more in the long run)The customer service is key in insuring your loans are structured for the discount or cash back that can benefit you most as well as answering all your questions now and in the future. Look for a company who will assign you a loan advisor vs. a mass call center as they typically will take more time with you to work through your situation.Be aware that the FFELP Consolidation Program is strictly for your Federal Loans. Some companies will want you to consolidate your private and federal loans together vs. separately. This is a big concern to the Department of Education as students have been losing their Federal Benefits. For more about the Federal Cosolidation Program, check out the source below, or message us at studentaidlending.Good luck, I hope this helps!

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