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Debt Consolidation Loans: Avoid Online Scams |
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Online Debt Consolidation Loans Companies.
You've probably heard the advertisements on the radio or seen them on the television or in the newspaper:
Be Debt Free in just Days.
Easy Debt Consolidation Loans.
Erase your Debt Now!
Whether known as "Online Debt Consolidation Loans Companies" or "Online Debt Consolidation Financing Companies" or "Online Debt Consolidation Mortgage Companies", they are all part of a relatively new type of online debt consolidation network. And they are Hot.
Recent popularity.
Millions of Americans have a wallet full of credit cards--plus expensive personal loans, auto loans, second mortgages and more. They're tired of paying 15%, 21%, 29% and more on credit cards, auto loans, personal loans and other types of credit. With a debt consolidation loan people can wipe the slate clean and start over. A debt consolidation loan can lower your interest rate, combine all your accounts into just one convenient monthly payment and give you some extra breathing room in your budget. In many cases you can net an extra $300, $400, $500 or more per month just by consolidating your debt at a lower interest rate. You'll save money now - and at tax time too (be sure to consult your tax advisor for specific laws in your area.)
How they work.
Most of the online debt consolidation loans companies work something like this:
• You fill out a brief 1 or 2 page online form. This can normally be done in just a few minutes.
• The online debt consolidation loan company sends this form to its network of banks.
• You receive back a return email. This contains the best offers from the network of banks.
• You select the loan offer you like best (normally the one with the lowest interest rate).
It is really that easy. If you like any of the offers you just reply to the email, indicating which offer you want to accept or to request more information. And all of this costs you nothing! There should never be an application fee.
Not all debt consolidation loans are the same.
There are 3 bits of information about your loan that are very important:
Amount Financed: The amount of credit provided to you. This will normally be the amount of the loan you will receive from the lender.
Finance Charge: The dollar amount the loan will cost you. This is the interest you will pay on the loan.
Total Payments: The total amount you will have paid after you have made all payments as scheduled.
These figures can vary wildly between lenders. You should treat these debt consolidation offers as you would a new car ... shop around for
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