It's hard enough to find quick and easy answers and may seem impossible when
the collection agencies constantly phone your house and threaten you and your
family. Ultimately your decision to choose debt consolidation loans or a
consumer credit counselling program to consolidate credit card debt, should be
based on your own personal financial situation.
A major benefit of consolidation loans is convenience. Instead of paying 20
different creditors who are charging different rates at different times of the
month, you take out one big loan and pay off all those accounts. Then you make a
single payment on that loan once a month.
Before you commit to this plan, be sure that the costs of the new, bundled loan
will truly be less than what you're already paying various creditors. For many
consolidation-loan candidates, their current credit woes mean they won't get the
lowest-available interest rate. Plus, when there is nothing to secure the loan
(such as your home), expect the lender to increase the rate.