Debt Consolidation Loan rates are variable, depending on status. Your monthly repayments will depend on amount borrowed and term.

Consolidating debt can be an effective solution if you have accumulated a lot of high-interest debt through an assortment of credit cards, store cards, personal loans, in fact any type of debt that you are struggling to pay back.

Debt consolidation will combine and repay all existing debt with one single loan, usually at a better interest rate, which means that monthly repayments are reduced and you are able to pay back money you owe sooner.

Spend time researching different lenders and get quote from a handful before deciding on whom to take your debt consolidation loan from. Shopping around will give you means to decide on one that best suits your circumstances and budget.

The benefits of a Debt Consolidation loan is that you will only have one monthly bill to pay and depending on rate of interest, size of monthly repayment compared with what you were paying to your creditors each month, is likely to be reduced.

The drawbacks to a Debt Consolidation loan are that you are likely to have to repay loan over a longer period and as debt is secured, your home is at risk if you do not keep up with payments being made on it.

You may freely reprint this article provided author's biography remains intact: