What Is a Debt Consolidation Loan?
A Debt Consolidation Loan is used to combine all your existing consumer debt or credit card debt into one single loan and make only one monthly payment. It allows you pay off your bills and stop creditors from calling. Depending on the amount of debt that you have you may or may not have to have collateral. Consumers with property such as a home or car may get a lower rate through a secured loan using their property as collateral. Since the home or car is used to secure the loan this poses less risk to the lender, which is passed on to you in the form of a lower interest rate.

What Would The Debt Consolidation Loan APR Be?
The APR of a debt consolidation loan can vary, depending on you credit. Most generally, your loan is secured with collateral so you will have a lower APR on the debt consolidation loan. Credit cards and other unsecured debt can carry high APR's, especially when you are behind on payments.

Are There Any Tax Benefits With A Debt Consolidation Loan?
If you are consolidating your debt through a second mortgage or a home equity line of credit, these loans may provide certain tax advantages that are not available with other kinds of credit. Be sure to consult your tax advisor for more information.

Are Debt Consolidation Programs Viewed As Good To Creditors?
Yes. When someone is trying to consolidate, it is viewed as positive by your creditors. When someone has fallen behind or even quit making payments to a creditor, most generally they will be contacting you and harassing you to make payments. So you entering into a debt consolidation program is good for the creditor and even better for you. Continuing to stay out of debt and fix your spending habits will help build back up the long process of rebuilding your credit.

Will Harassment From Creditor Stop One I Consolidate My Debt?
Yes. By consolidating your unsecured debt into one loan, you will be paying off the creditors so they will not be calling you and harassing you anymore.