Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loanold loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.

It sure sounds like it. Transaction fees (3%) are assessed for transfering your revolving credit card balance to another card. This is to prevent people from constantly boucing their credit card debt back and forth from month to month. It’s also an easy way for the banks to make quick money too.

Whether it is a credit card or an unsecured personal loan, it’s the interest rate that you should look at. Often, they try selling you on the MONTHLY PAYMENTS not the rate, so watch out for that. It only makes sense to transfer debt or consolidate debt if you will be getting a lower interst rate.

The problem with debt consolidations is that most people who enroll in this program end up charging everthing on their credit cards again so in the end they owing twice as much (the loan and new credit card debt).