Top Debt Consolidation Loans

When you are looking into consolidation loans for debt there are plenty of options, what you need to figure out before you start looking at specific loans is what kind of consolidation loan will be best for you first to greatly narrow your search for the top debt consolidation loan.

To get your best debt consolidation loan, make sure you compare interest rates and examine the loan terms, particularly look for loan fees. For instance, you may pay them $100, $90 of which they'll pay to the people you are indebt to, $10 of which they'll take as a fee for their services, and because less money is going towards your debt it will take longer to pay it off. The best consolidation loan will have the lowest fees and interest rates. Check your current lender for consolidation loan offers first, especially credit unions as they will offer lower interest rates.

Top Debt Consolidation Options

Take a Home Equity Loan. This is a popular option for consolidation loans because you'll likely get the lowest interest rate for your loan of all your consolidation options, and the interest you do pay is tax deductible. Loan Equity is the amount you have already paid on your home, so you have to have paid a bit on your home already for this to be an option. The primary drawback is that you are taking out a second mortgage on your home, and if you do not make timely payments they can foreclose on your home even if your on time with your primary mortgage. Most of these loans require a beginning fee of seventy five to several hundred dollars, the cost of a home appraisal, and title insurance.

Refinance Your Car A lot of people don't think of this, but if you have a car you can use the vehicle as collateral for a secured loan. This has the same deal as above: lower interest rate, but if you fail to pay they will repossess your property.

A Personal, or Unsecured, Loan This will have a higher interest rate than a secured loan (where you use your property as collateral) but will have a lower interest rate than most credit cards. You need to have good credit to be eligible for an unsecured consolidation loan. This will be the top loan option for those without property for collateral.

Balance Transfers. This is at the bottom of my list because while it has clear debt consolidation advantages, it is a risky move that will turn out badly for many people so you need to consider this one cautiously. With good credit, you may be able to obtain a new credit card with an introductory low interest rate. You can transfer the balance of multiple high interest rate cards onto your new card with the temporarily low rate. To do this wisely, you need to be very aware of all of the terms on your new card, and hopefully be in a situation to pay off your new card quickly. Keep in mind this consolidation option is on the bottom for a reason: you could easily increase your debt once the interest rate rises on your new card.

Bonus Idea: Negotiate Better Terms. I mention this as a bonus because it's not really a consolidation loan, but it is a good idea to consider when you have multiple loans with high interest or other problems. You can make calls and try to negotiate on your own behalf. This is always a good option and something you should try. Most people on the phone are authorized to cut interest rates down for you.

Hopefully one of these options will work for you, the most important thing to remember is debt will not go away on it's own and the key is to do something. Looking at this list was a great start, now figure out your best option and get on the path to your top debt consolidation loan!