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Repaying debts successfully is an intelligent mix of selecting the right plans and getting the best out of them. Debt consolidation is widely used by debtors to get out of debts and consolidation loans play a pivotal role in the success of a debt consolidation program.

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A debt consolidation program may be rendered toothless if a debtor falls for a loan with annoying interest rates or veiled transaction fees etc. In fact, there is every chance of your widening your debt hole if you get a loan that becomes a liability rather than relief.

What constitutes the best debt consolidation loan?

When on the lookout for a consolidation loan that should work best for you, do not just fall for one just because it offers you the lowest possible monthly payment. Look at the bigger picture and analyze the vital parameters that make up any loan i.e. tenure of payment, interest rates, late fees and charges, processing fees, annual fees, any introductory rates, track record of the lender etc.

It is the right blend of all these variables that will make a debt consolidation loan work to its best.

How to reach out to the best debt consolidation loan?

You can easily make it to the best consolidation loans offered in the business if you use the guidelines listed below:

1. Spend some time and scan out non-profit credit debt consolidation companies. You can launch extensive search on the Internet, contact the Better Business Bureau, enquire from pastors at churches and also get in touch with the National Foundation for Credit Counseling (NFCC). This foundation tracks down and maintains record for all non-profit debt consolidation companies. When you lay your hands on an authentic non-profit organization, you eliminate any chances of scamming besides getting the most authentic loans at nominal rates.

2. Scrutinize the credentials of the debt consolidation company and run a check through their track record. Pick the companies with a good number of years behind them in the industry and a good track record.

Once you have short-listed a few debt consolidation companies based on the above criterion, it is time to seek answers to the following queries:

1. Fees and charges: Analyze the fees structure in detail including any annual, bi-annual, processing or any other miscellaneous fees. Put together the interest rates and cumulative fees and analyze if the debt consolidation loan may prove costlier in the long run due to high fees and charges. It is possible that a loan is offered at a low rate but may prove to be expensive in the long run because of a fee structure.

2. Monthly payment amount: Avoid debt consolidation loans that offer abysmally low monthly payments. These loans may seem lucrative at the outset but they stretch over a long period and you end up shelling out a lot of money on interest. Choose a loan that offers monthly installments within your comfort zone but avoid the really low ones.

3. Variable rates: If you are not a market analyst or specialist in finance trading, avoid debt consolidation loans on variable interest rates. It is difficult to predict market standards over a long period of time especially if you are not one amongst the specialists. It is common knowledge that rates cannot be static for a long duration of time. However, if you find the variable rate of interest too tempting to resist, consider it only if the tenure of the loan is relatively short.

4. Time period: Choosing between tenure and rates is a dilemma most debtors face when taking up a consolidation loan. A lengthier tenure surely brings the relief of low monthly payments, but you dole out the extra amount on interest. A short-lived loan may cut the interest figure down, but may prove heavy on your monthly budget. Take your time and pick up the one with a healthy balance between time and interest rates.

5. Collateral: Of course, most lenders require collateral but there are a few that do not require collateral. Find out such companies but do not leave any stone unturned in finding out minute details of the loan.

6. Do not rush: Search and compare as many offers/companies as you can before you make the deal.

For best debt consolidation results it is necessary to make every move with a lot of thought and pick out the best debt consolidation loan available. You can surely call your shots correctly if you keep the above pointers in mind while picking up a debt consolidation loan.