Low Interest Debt Consolidation Loan Help and Tips
Are you looking to consolidate your debt into a low interest debt consolidation loan? When the economy is not doing well, consolidating your debt into one payment can make more sense then ever. Especially, if you have good credit but you ran into a few unfortunate situations where you got into debt.
Here are a few examples for you about how to obtain a low interest debt consolidation loan. These examples will only help you if you take action on your part though. Fine a pen and some paper to write the examples down. Look at your recent statement for the following information.
1. With every debt you have write down the name of the company, total amount owed, interest rate, and minimum payment per month due.
2. Your writing pad should look like this.
Debt 1. - Name = ABC Credit Card Company
Total Amount Owed = $5500
Interest Rate = 15%
Payment = $75 a month minimum for ? (I don’t know the months) – Not good!
Debt 2. - Name = XYZ Company Car loan
Total Amount Owed = $9900
Interest Rate = 5%
Payment = $200 a month for 36 months
Once your debts are written down you are one step closer to looking for a low interest debt consolidation loan. In order to find the lowest interest rate take a look at what you currently have therefore you can get an idea of what you are up against when applying for a new loan.
For example, take a look at what your credit score is to determine if you are in a good, fair, or poor standing position with your credit score. You can go to one of the three credit score websites. The credit bureaus are Experian, Equifax, and Transunion. When you check your credit score, expect to pay in the range of around $20. Make sure you get your credit score as well which costs a little more.
When you have your credit score and report in hand it will help you to understand your financial situation better. Now, the fun begins. You need to shop around for a low interest debt consolidation loan. Where would you look for this type of loan? To begin with there are Google ads on this website that could help you. Also, there are websites like bankrate.com and cashcow.com that have lined up loan companies looking for your business.
Make sure that you go shopping for loans and compare the interest rates, payments, and amount of time it will take for the loan to be paid off. You want to make sure you are getting a better deal then you currently have.
Once, you find the loan that you need and you consolidate you debt, be extra careful to not get back into debt. The best thing to do to avoid this is to stop the debt before it happens. How? You can close the account that you consolidated like a credit card, personal loan, etc. You can also shred your credit cards in a shredder to make sure you don’t go back to using them.
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