Debt Consolidation Loans - Are They Still Available?

There are hundreds of people who think that a debt consolidation loan is the best way out of debt. With the current state of the economy, it has become extremely difficult to obtain a loan and this is especially true for borrowers who have large amounts of debt and or poor credit. Ironically, these are exactly the ones who need a debt consolidation loan. If you are planning to go for a debt consolidation loan then the first question you might ask is, how and where to get such a loan. debt consolidation loans

Debt consolidation loans are often considered the most common method of getting your financial status back on track. Most people use them for getting out of a bad debt situation. Interestingly, the current difficulty in obtaining a loan causes most of these borrowers to contemplate a debt management plan as an alternative to a loan. For borrowers unable to obtain a loan, a debt management plan may, in fact, be the only solution. Regardless of which option is chosen it is a good idea to obtain credit counseling from a non-profit organization. Non-profit credit counselors will do a budget review free of charge and, if appropriate, offer a debt management plan. debt consolidation loans

However, there are a number of ways by which you can get a debt consolidation loan. Most people approach banks and this should be your first option as well if you are trying to consolidate debt via a loan. You need to approach a bank from where you have previously taken a loan and repaid it. This is for the sole reason that the bank will be aware of the fact that you repaid the loan and hence will be more willing to issue you a debt consolidation loan. debt consolidation loans

If you are a customer in a specific bank then that should be the first bank to approach because most banks give preference to their customers. At the same time, inquire at some of the local banks regarding a debt consolidation loan. You might be surprised at the fact that a number of local banks would be willing to provide you with the loan. What you do need to check with all the banks where you have applied is the interest rate on the debt consolidation loan and the duration of repayment. Some banks might charge you a higher rate but you can lower the rate as well if you try a little harder. It is easier to get a lower rate at your bank vis-a-vis any other local bank.