2. What is the rate of interest in debt consolidation loan?

Usually it is less than credit card loans. They charge 12-15% per annum in respect to 20% for the credit card companies.

3. The duration of repaying the debt consolidation loan?

You can choose from the option of 10 years up to 30 years. This will depend upon your loan amount and your current financial status.

4. Are there any collateral required?

Yes, essentially you should have your own home that you can keep as your collateral.

5. What if I fail to repay the installments for debt consolidation loan?

If you fail in successive occasions, the company will throw you out from your house. After that they will bring all the movable and immovable properties of your house under hammer. This is done to generate the amount you failed to repay.

6. What about those persons who do not own their home?

They can also opt for unsecured debt consolidation loans. Although no collaterals are required here, the rate of interest is higher.

7. What are the paraphernalia to get debt consolidation loan?

Once you have decided and choose your company, you have to formally apply for the loan. This can be either done in black and white or you can apply online. After that the experts from the debt consolidation loan company will pay you a visit to assess your credit status. They will also evaluate your home. Once this evaluation is complete, your loan is sanctioned based upon the evaluation. The amount will be directly transferred to your checking account.

8. Can I get the loan online?

Of course, you can apply for the loan online. But the guys will visit you personally for evaluation your house.

9. Is there any minimum payment option available?

Federal rule says, the minimum payment should be fifty USD. This will allow the debt consolidation company to fix the lower minimum for income sensitive repayment and graduated repayment options. As a borrower, you can switch between these two according to your capacity.