Debt consolidation information - Debt and bill consolidation
The FTC agrees that debt consolidation is a viable means of lowering your cost of credit. A debt consolidation loan is a big loan that you get to pay off smaller loans. The advantage of debt consolidation loans is that, they allow you to make one monthly payment instead of several payments to different creditors and they also make your actual monthly payment lower. These types of loans are best for people, who have several different credit cards at high interest rates and also other debts such as student loans.
Points to consider, before you get a debt consolidation loan, include the following:
These types of loans are usually secured against your home, so if you fail to pay them you could put your home in jeopardy. A good candidate for a debt consolidation loan, is someone, who intends to pay off their debts and get back on the road to financial health.
Try not to stretch out your payments over too long a period. This will increase the interest on the loan.
Once all debts are consolidated, your available balance on lines of credit will increase. Do not go crazy. Remember that you still have the same amount of debt, even though your monthly payment is lower.
In your search for a debt consolidation company – stay away from products or companies that have anything to do with “Ameridebt”. The FTC charged them with deceiving consumers into paying at least $170 million in hidden fees in November, 2003.
The following lenders are widely used debt consolidation companies:
Pioneer Lenders –
This company services all 50 states and has hundreds of lenders in their network. They also offer a quick and easy application process.
This company offers debt consolidation and refinance loans.
NextStudent - This is a free, U.S. Government student loan consolidation program (no fees or other charges). The application process is fast and free.  Recommended
In conclusion, a debt consolidation loan can be a strong tool in helping you lower your bills and achieving financial stability, as long as you take a disciplined approach to managing your finances.