DEBT CONSOLIDATION

What is debt consolidation?

A debt consolidation loan is a loan that allows you consolidate all your debts into one affordable monthly payment.

What are the advantages of a debt consolidation loan?

• Replace all your monthly payments with just one payment, which should make it easier to budget your monthly income.

• Debt consolidation loans may offer a lower interest rate than the rate you are paying on credit cards, which will result in smaller payment each month.

• With a lower interest rate and/or extended terms, you may be able to reduce your total monthly payments, or pay your loan off sooner.

How to qualify for a debt consolidation loan?

You must meet the following criteria:

• The bank will request a copy of your monthly expenses to determine if you can meet your payment obligations.

• You must be employed, or have a source of income that will enable you to repay the loan.

• Your bank may request a co-signor or collateral. (house, car, boat etc..)

What is the next step?

To find out if you qualify for a debt consolidation loan, contact your bank or financial institution.