Debt Consolidation Loans

Debt consolidation loans are essentially ways to reorganize your loans. Rather than pay off several loans, a debt consolidation will allow you to put all of your loans into one large loan — making it easier for you to manage your debts.
To be honest, to understand the loans, you’ll need to talk to a debt expert. Debt Consolidation Care is a debt community that will send you more information after you fill out the form below. Finish the form below, read the rest of this article, and you’ll be in good shape:

Debt consolidation loans are one of the more controversial arenas in the realm of financial planning. Some financial advisors hate debt consolidation, and other advisors love them.
In this article we’ll break down the pros-and-cons of such a loan, and consider whether or not it’s actually a good idea.
At the end of the article there are some links that can help you continue researching debt consolidation loans. But first, some definitions.

What is a Debt Consolidation Loan

A debt consolidation loan is a loan that you are given in order to “consolidate” your other loans. For example, let’s say you have 5 small loans. A debt consolidation loan is where you take one big loan and pay the small loans off — thereby consolidating them.
A debt consolidation does NOT reduce your debt directly. It consolidates your debt. I’m still a fan of the loans because I think it should be a given that re-organizing your financial situation makes it much easier to achieve your goals.
If you’re going to get rid of items in your closet, you should probably reorganize and clean it first — same thing goes for debt and debt consolidation loans. Let’s talk about the disadvantages and then the advantages of getting a debt consolidation.

The Disadvantages of a Debt Consolidation Loan

Before we cover the advantages of a debt consolidation loan, let’s look at some of the disadvantages first:

• Isn’t Doing Anything. As I explained above, some financial gurus, like Dave Ramsey, are against debt consolidation loans because they think they achieve nothing except organization.

• It Takes Longer. Some debt consolidations are where you agree to pay less money, but over a longer period of time. This, of course, depends on the debt consolidation loan itself — each one can be different.