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Sometimes the interest rate can be higher than the total APR on your current debt.Some unscrupulous lenders charge an enormous up front fee that they don't go out of their way to tell you about.You in turn pay the "bill paying service" a monthly payment equal to the amount of all your accounts in the plan, plus a service fee, and maybe interest if they could not get all of it removed.This should hopefully cost much less than your total payments before, since most credit cards will drop the interest rate to 0.You pay more interest when your payments are stretched out to 60 months.Your debts consist of: gas card with a balance of .0 at 18%Master Card balance of...,000 at 14%VISA balance of............... Your local bank charges 12% interest for home equity loans and has an 0 loan origination fee.They might offer you a lower payment, but check their math and you might discover that it ends up costing you more than your original bills. They could have a high APR and stretch the payments out over a long period of time, which is costing you more in the long run.
If you take out a consolidation loan, consider these simple rules: NEVER, EVER, EVER, SIGN A CONSOLIDATION LOAN WITHOUT FULL DISCLOSURE IN WRITING OF: 1) The principal amount that you are borrowing. Verbal statements or claims made by salespeople do not hold up in court.You should close out all the accounts you paid off with your consolidation loan, so you don't run up the balance again.Consolidation Plan: A "bill paying service" that has the influence to work with your creditors to reduce or eliminate your interest and late fees, and agrees to send them your payment every month.Notice that no one is lending you money, they are just restructuring your debt, which is safer.Don't confuse these companies with lending institutions, or banks, they are not lenders.