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Article Title: Is There Such A Thing As A Bill Consolidation Loan?
Author: Daniel Major
Category: Finance
Word Count: 466
Keywords: debt, consolidation, finance, money, bills, loans
Author's Email Address: [email protected]
Article Source: http://www.articlemarketer.com
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Quite simply, bill consolidation loans are loans that pay off lots of smaller 
loans and debts that usually have higher interest rates. The benefits and value 
of applying for bill consolidation loans are;

1#.  The debtor can move all debt into a single loan, a single loan that will 
usually have a smaller monthly payment than the total amount payable on all 
previous debt.

2#. The interest rate is normally a lot lower than the average rate of all 
previous loans or debts.

3#. Bill Consolidation Loans free you from the monthly worry of unintentionally 
missing a payment; with a single loan there would be only one payment to worry 
about on a fixed date instead of several payments all on different dates.

4#. Prioritizing will no longer be a concern; no more worrying about who should 
be paid first, one single creditor, one single payment, one payment to remember.

Types of Bill Consolidation

Bill consolidation loans need not be from financial institutions; those of us 
lucky enough to have a wealthy or comfortable relative may be able to get a 
family loan at no interest; or at very least at an interest rate comparable to 
the interest lost while the money is out of the account it came from.

If you have collateral, your home for example, a home equity loan would be the 
easiest and best way in which to carry out a consolidation and the interest 
rates are relatively attractive.

Unsecured loans are much less frequently used as they require an excellent 
credit score to be approved. The interest rates are higher than the secured 
alternative but the threat of losing your home, should something terrible 
happen, is not a concern.

Credit Card chasing, with so many credit cards offering 0% introductory offers 
for 6 or 12 months on transferred balances it's a clever way to eliminate your 
credit card debt quickly without paying interest, but vigilance is required as 
once the introductory offers expire you could be left with all your debt on 
quite a high interest rate.

An option many go for is the debt settlement specialist. These companies will 
contact your creditors, negotiate lower settlement figures with them and then 
sort out one of their many bill consolidation loans to suit your situation to 
pay off the negotiated settlement figures.

The benefits are that you reduce both your monthly payment and the time you are 
in debt, meaning you are out of debt that much sooner.

In all fairness, though, you WILL be charged for this service, and the 
procedures they use are quite easy to replicate.

My suggestion is not to waste money paying someone else to do what you can do 
yourself. There are websites that offer all the information needed, plus 
methods that could have you free of debt quicker than any debt settlement 
service could promise to do.

For more information and advice on debt consolidation ,or if you would like to 
know more about the little known method of debt elimination mentioned above, 
visit: http://www.creditcardconsolidationloanssite.com or,
http://www.debtconsolidationinformationonline.com
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