Debt consolidation loans

I want to get a debt consolidation loan for all my debts. I got a quote for $30,000 @ 10.15% for 15 yrs, which pays off all of my debts. But I read thru the paperwork and it state that it may be a payoff early penalty and will not be entitled to a refund of part of the finance charge. Is this a good loan to sign off on?

McCain..Have you looked into a debt consolidation plan, as opposed to a loan? A plan will pay off your debts without a loan. Incurring more debt to pay off debt is rarely a good idea. Especially if there are penalties for paying early. You're going to end up paying MORE on your debts than you currently owe. Speak with one of our counselors first about consolidation before you sign off on a loan.

Using my calculator, I come up with this:
Monthly Payment = 325.15
Amount Financed : $ 30000
Finance Charge : $ 28523
TOTAL CONTRACT VALUE : $ 58523

Here's one way to think of your Finance Charge Rebate: If you make payments for the full 15 years, you would end up paying $28523 in interest. If you paid it off in one year, you would expect NOT to pay all that interest, right?

Under a Rule of 78ths contract, if you paid off your loan in the 12th month, you would normally receive a rebate equal to 4 years of unearned interest.

If they are telling you that you are not entitled to a rebate of the finance charge, then that means even if you pay the loan off next month, they are going to charge you $28523 in interest. And from what it sounds like, they will charge you a penalty on top of it.

If you know with 100% certainty that you will not ever pay it off early, then you don't need to worry about a rebate. If you do want to pay it off early, though, you will get screwed.

Welcome to the forums/ By any chance would this loan be with Wells Fargo? The reason I am asking it says that on my contract to. However when I paid them off I didnt have that interest. Just wondering. KYSIDE38