http://www.debtreliefadvice.com/debt-consolidation/debt-consolidation-loans/ Debt consolidation loans, just like debt consolidation programs, are designed to get you out of debt in about five years. Find out how debt consolidation loans work by reading this page. en-us Sat, 26 Jul 2008 15:00:00 EDT Sat, 26 Jul 2008 15:00:00 EDT Weblog Editor 2.0 If you want to get your credit cards and other unsecured debts paid off fast, check out debt consolidation loans. Here's How Debt Consolidation Loans Work If you're curious about how debt consolidation loans work, you've come to the right place. First, you contact a debt consolidation company and discuss your financial situation with a debt consolidation agent. Ask if debt consolidation loans are right for you. The agent will be able to tell you. If it is, the debt consolidation company will make a loan to you, which you will use to pay off your unsecured debts. Then you pay back the loan at a much, much lower rate of interest. The outstanding debt will still show on your record, but your creditors will show as being paid in full. You'll still be in debt, but not to MasterCard, Visa, Discover, etc. The Danger of Debt Consolidation Loans As good as debt consolidation loans sound now, there is a little bit of danger in that your credit cards will once again have zero balances. That means that if you don't get some kind of debt counseling or become very disciplined with your credit card spending, you could end up right back where you started--in debt--with all those payments in addition to your debt consolidation loan payment. Of course, you might be able to get another debt consolidation loan, but do you really want to live your life paying back debt consolidation loans to get out of debt, or would you rather get out of debt for good? Debt Consolidation Mortgages If you're a homeowner, check into debt consolidation mortgage loans. This will allow you to borrow from the equity in your home to pay off your debts. You'll benefit from lower interest rates. For example, you can go from paying 19% on your Visa bill to paying 6% on a debt consolidation mortgage. This amount is added to your mortgage payment each month. One thing to know--your house is your collateral, so if you miss payments, you could lose your house. Because of this, you shouldn't get a debt consolidation mortgage unless you are certain that you can afford the monthly payment. Debt Consolidation, Generally Speaking Debt consolidation is a way to pay off your debt without getting a loan. What happens is a debt consolidation agent contacts your creditors and negotiations begin. They negotiate with your creditors for lower interest rates and lower monthly payments. Sometimes they can even get past fees like late fees or over-the-limit fees eliminated. Then all your monthly payments to your creditors are bundled together into one, and you make one monthly payment to the debt consolidation company instead. Because of your lower interest rates, you'll be out of debt in about five years. And debt consolidation comes in many forms, such as credit card debt consolidation, personal debt consolidation and online debt consolidation. Search the Internet to find out which type of debt consolidation program interests you the most. Sat, 26 Jul 2008 15:00:00 EDT