California Department Of Consumer Affairs

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You are in debt, and they decided to start afresh with a debt consolidation loan. At this point, the last thing you need is the adverse conditions that will keep you in debt for even longer.

Be sure to check out the following aspects before you commit to and complete your debt consolidation loan.

advance fee

A small advance fee as a fee for processing are common in most debt consolidation loans. Avoid loans with expensive pre-tax and businesses that offer to charge you high fees in order to reduce debts.

Interest rates

Your interest rate should be significantly lower than the rates your credit kartice.Dug consolidation with high interest rates will only slow you down in clearing your loan off. Get and compare as many loan quotes as possible. It would be best to have a fixed interest rate loan, so your monthly payments do not change over time. It will be easier for you to plan your budget.

repayment

Your loan repayment period should not be too long because it will increase the amount of interest paid. You may even find yourself paying more than before you consolidate your debts. As much as possible, you should aim in the shortest repayment period for you to save on interest. Try to do the repayment period and amount in which you can manage.

Impact on credit rating

I understand your debt consolidation loan procedures before you sign your loan. Ask if it will affect your credit rating and results. Avoid lenders who are not clear on the question as to who will most likely mess up your credit rating.

to local consumers or the Better Business Bureau

It's in your best interest to check the reputation of the company that you work s. You want to avoid working with someone who is receiving tons of complaints. Check with your local Consumer Affairs or on-line to see if there are any ANR outstanding issues with your lender.

With all the above factors considered, you should be able to find a good debt consolidation loan will help to re-debt-free life.