A debt consolidation lender is often the best place to go if you want to get a loan to pay off your credit cards and other debts. They might be easier to work with than a traditional bank, especially if you don't have a great credit score.
It's important to find the right lender because interest rates and other services can vary a lot from one lender to the next.
When you ask for a loan for the first time, you will have to fill out a fairly long application form that asks about your current debts, income, assets, etc. You may also be asked about how you live and spend your money so they can figure out how the debt got so big.
When comparing one lender to another, here are some of the most important things to think about:
- Rate of interest
- Payment every month
- How long the loan is for
- Lender's commission (also known as "points")
These things can have a big effect on how much you have to pay back in total. Also, a lender whose terms are good in one area may end up costing more if their terms are bad in another.
For example, if the interest rate from one lender is better, but they charge you a fee, your total payment could be more. Most commissions are based on "points," where one point is equal to 1 percent of the total amount you are borrowing.
The Internet is a great place to find information about debt consolidation lenders. It makes it easy and quick to compare the terms of different lenders without having to leave your house.
There are a lot of lenders who only work online, but you should always talk to them in person before making your final decision. Call their customer service and talk to one of their staff members. Check to see if they can answer your questions well, how quickly you can reach them, and if you feel comfortable with them.
You might have to deal with them for a few years, so you want to be sure you're making the right choice before you sign on the dotted line.
