The personal sacrifices, and financial complications a person and their family have to endure when servicing monthly bills may be an avoidable hardship.  No matter if, a person’s accumulation of monthly bills is the result of a sudden and unexpected financial burden, loss of employment, or unfortunate medical expense a debt consolidation loan may provide a borrower with the financial resources needed to reduce their aggregate monthly expenses and positively affect their household’s social and economic conditions.

The net benefits of a debt consolidation loan vary according to each borrower’s personal circumstances, but they can be profound.

Debt Consolidation Loan

The timeliness of a borrower’s decision to consolidate his or her bills can, and usually will, effect the terms of any loan they obtain to consolidate their bills.  

Example: when a borrower applies for a loan any late payments on their monthly bills that have been reported to a credit agency will affect a loan program’s interest rate, and principle amount.  In addition, they could possibly disqualify them from being able to obtain a debt consolidation loan.

Most borrowers should avoid using credit cards, or revolving lines of credit to service their monthly bills.  Accumulating high interest rate debt and paying the minimum monthly payment will likely compound a borrower’s financial hardships in the short and long run if they have no projected monthly income increase or expense decrease.  
The most rewarding financial strategy is likely to be a debt consolidation loan.