consolidation loan

Dear Reinaaguialr,

Welcome to the community. :)

If you want to talk to someone about debt consolidation then you can call this community????????s toll free number 800-601-1579.

You can also get Free debt counseling from our community.

Now, let me give you an overview on debt consolidation loan. It is a personal loan which you can get from a financial institution and consequently pay-off the outstanding debts. This helps to payoff your multiple debts through a single loan.

debt consolidation loans are of two types: -
1. Secured Debt Consolidation loan ???????? you are required to give collateral against this loan, generally home.
2. Unsecured Debt Consolidation loan ???????? collateral is not required here and the loan is forwarded to you solely on the basis of your repayment capacity.

Some of the documents required for qualifying for a debt consolidation loan are: -
??????? You have to submit a copy of the monthly budget to your bank. This is done to determine your loan repayment capacity.
??????? You should have a steady and regular source of income.
??????? In case of a secured consolidation loan, you will require collateral (such as house/car) and a cosigner.

Before opting for a debt consolidation loan, you should shop around and check the following pre-requisites: -
1. Please try to avoid those companies who will charge you fees even before giving you any service.
2. Look at the rate of interest attached with the loan. Secured loans attract less interest rate than the unsecured ones.
3. Please check that the repayment amount of the consolidation loan is less than the total monthly interest rate you used to give in multiple loans.
4. Please assess your financial position correctly so that you can make monthly payment at the right time. Otherwise, your credit score may get adversely affected due to non-payment or late payment of the consolidation loan.

You can also go through the article Can debt consolidation loan really free you from debt? for more information.

Regards,

Phoenix