CC: Debt Consolidation Loans

Getting a Debt Consolidation Loan

If you’ve decided that a loan for consolidation is what best serves your “interest” – perhaps literally – let’s get started! Before we begin the process, though, there are several things you need to know about the characteristics of loans to get the best rates and terms that you can.

Characteristics of Debt Consolidation Loans

There are a variety of terms related to debt consolidation loans that we need to define. Any loan will have a mixture of the terms and characteristics below and it’s very important to understand exactly what these terms really mean:

  • Fixed Rate: A fixed rate loan is one where the interest rate will never go up or down.
  • Variable Rate: A variable rate loan is one where the interest rate can go up or down.
  • Fixed Term: A fixed term loan is one where the loan ends – after a specified period.
  • Variable Term: A variable term loan is one where the length of the loan can change.

For purposes of debt consolidation, the best loan is both a fixed rate & fixed term loan.

Since “variable rate” means the rate can go up or down, which way do you think the banks will adjust it? And, since a “variable term” means that your lender will keep your loan open, forever, and let you make smaller payments (while they charge you interest on the principal – which will only grow, while your payments mostly go to interest), you don’t want “variable”.

Types of Debt Consolidation Loans

Next, you need to know about what are called “pre-payment penalties”. What this type of loan term means is that, if you try to pay off your entire loan early (or pay a little bit more each month, hoping to get out of debt even faster), you get charged a “penalty” – and that’s not fair!

Where to Get Good Debt Consolidation Loans

The best personal debt consolidation loan is a fixed rate, fixed term loan, with NO penalties. offers this type of loan. You can select a loan term of 1 year, 3 years or 5 years. And you can apply online, instantly.