About Debt Consolidation
A debt consolidation loan is a loan that allows you to consolidate all your debts into one affordable monthly payment.
There are numerous advantages to consolidating debt, including:
- Replacing all your monthly payments with just one payment, making 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, resulting in smaller monthly payments.
- 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.
You must observe the consolidation procedure and 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.
- The filing of a proposal stays all legal actions undertaken or contemplated by unsecured creditors.
- Your bank may request a co-signor or collateral (house, car, boat etc…).
To find out if you qualify for a debt consolidation loan, contact your bank or financial institution.
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